Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Jan. 29, 2015 |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | GOOG | ||
Entity Registrant Name | Google Inc. | ||
Entity Central Index Key | 1288776 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $290 | ||
Class A Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 286,938,352 | ||
Class B Common Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 53,018,898 | ||
Class C Capital Stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 340,665,532 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $18,347 | $18,898 |
Marketable securities | 46,048 | 39,819 |
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 64,395 | 58,717 |
Accounts receivable, net of allowance of $631 and $225 | 9,383 | 8,882 |
Receivable under reverse repurchase agreements | 875 | 100 |
Deferred income taxes, net | 1,322 | 1,526 |
Income taxes receivable, net | 1,298 | 408 |
Prepaid revenue share, expenses and other assets | 3,412 | 3,253 |
Total current assets | 80,685 | 72,886 |
Prepaid revenue share, expenses and other assets, non-current | 3,280 | 1,976 |
Non-marketable equity investments | 3,079 | 1,976 |
Property and equipment, net | 23,883 | 16,524 |
Intangible assets, net | 4,607 | 6,066 |
Goodwill | 15,599 | 11,492 |
Total assets | 131,133 | 110,920 |
Current liabilities: | ||
Accounts payable | 1,715 | 2,453 |
Short-term debt | 2,009 | 3,009 |
Accrued compensation and benefits | 3,069 | 2,502 |
Accrued expenses and other current liabilities | 4,434 | 3,755 |
Accrued revenue share | 1,952 | 1,729 |
Securities lending payable | 2,778 | 1,374 |
Deferred revenue | 752 | 1,062 |
Income taxes payable, net | 96 | 24 |
Total current liabilities | 16,805 | 15,908 |
Long-term debt | 3,228 | 2,236 |
Deferred revenue, non-current | 104 | 139 |
Income taxes payable, non-current | 3,407 | 2,638 |
Deferred income taxes, net, non-current | 1,971 | 1,947 |
Other long-term liabilities | 1,118 | 743 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 671,664 (Class A 279,325, Class B 56,507, Class C 335,832) and par value of $672 (Class A $279, Class B $57, Class C $336) and 680,172 (Class A 286,560, Class B 53,213, Class C 340,399) and par value of $680 (Class A $287, Class B $53, Class C $340) shares issued and outstanding | 28,767 | 25,922 |
Accumulated other comprehensive income | 27 | 125 |
Retained earnings | 75,706 | 61,262 |
Total stockholders’ equity | 104,500 | 87,309 |
Total liabilities and stockholders’ equity | $131,133 | $110,920 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Total cash, cash equivalents, and marketable securities, securities loaned | $4,058,000,000 | $5,059,000,000 |
Accounts receivable, allowance | 225,000,000 | 631,000,000 |
Convertible preferred stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Convertible preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Convertible preferred stock, shares issued | 0 | 0 |
Convertible preferred stock, shares outstanding | 0 | 0 |
Common and Capital Stock, Par or Slated Value Per Share | $0.00 | $0.00 |
Common and Capital Stock, Shares Authorized | 15,000,000,000 | 15,000,000,000 |
Common and Capital Stock, Value, Issued | 680,000 | 672,000 |
Common and Capital Stock, Shares, Issued | 680,172,000 | 671,664,000 |
Common and Capital Stock, Shares, Outstanding | 680,172,000 | 671,664,000 |
Common stock, par value (in dollars per share) | $0.00 | |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock and capital stock, shares authorized | 9,000,000,000 | 9,000,000,000 |
Common stock, par value | 287,000 | 279,000 |
Common stock, shares issued | 286,560,000 | 279,325,000 |
Common stock, shares outstanding | 286,560,000 | 279,325,000 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock and capital stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Common stock, par value | 53,000 | 57,000 |
Common stock, shares issued | 53,213,000 | 56,507,000 |
Common stock, shares outstanding | 53,213,000 | 56,507,000 |
Class C Capital Stock | ||
Capital stock, par value per share (in dollars per share) | $0.00 | $0.00 |
Capital stock, shares authorized | 3,000,000,000 | 3,000,000,000 |
Capital stock, par value | $340,000 | $336,000 |
Capital stock, shares issued | 340,399,000 | 335,832,000 |
Capital stock, shares outstanding | 340,399,000 | 335,832,000 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenues | $66,001 | $55,519 | $46,039 | |||
Costs and expenses: | ||||||
Cost of revenues | 25,691 | [1] | 21,993 | [1] | 17,176 | [1] |
Research and development | 9,832 | [1] | 7,137 | [1] | 6,083 | [1] |
Sales and marketing | 8,131 | [1] | 6,554 | [1] | 5,465 | [1] |
General and administrative | 5,851 | [1] | 4,432 | [1] | 3,481 | [1] |
Total costs and expenses | 49,505 | 40,116 | 32,205 | |||
Income from operations | 16,496 | 15,403 | 13,834 | |||
Interest and other income, net | 763 | 496 | 635 | |||
Income from continuing operations before income taxes | 17,259 | 15,899 | 14,469 | |||
Provision for income taxes | 3,331 | 2,552 | 2,916 | |||
Net income from continuing operations | 13,928 | 13,347 | 11,553 | |||
Net income (loss) from discontinued operations | 516 | -427 | -816 | |||
Net income | 14,444 | 12,920 | 10,737 | |||
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - basic: | ||||||
Continuing operations (in dollars per share) | $20.61 | $20.05 | $17.66 | |||
Discontinued operations (in dollars per share) | $0.76 | ($0.64) | ($1.25) | |||
Net income (loss) per share - basic (in dollars per share) | $21.37 | $19.41 | $16.41 | |||
Net income (loss) per share of Class A and Class B common stock and Class C capital stock - diluted: | ||||||
Continuing operations (in dollars per share) | $20.27 | $19.70 | $17.39 | |||
Discontinued operations (in dollars per share) | $0.75 | ($0.63) | ($1.23) | |||
Net income (loss) per share - diluted (in dollars per share) | $21.02 | $19.07 | $16.16 | |||
Weighted Average Number of Shares Outstanding | ||||||
Shares used in per share calculation - basic | 675,935 | 665,692 | 654,426 | |||
Shares used in per share calculation - diluted | 687,070 | 677,618 | 664,610 | |||
Stock-based compensation expense | 4,279 | 3,343 | 2,692 | |||
Cost of revenues | ||||||
Weighted Average Number of Shares Outstanding | ||||||
Stock-based compensation expense | 535 | 469 | 359 | |||
Research and development | ||||||
Weighted Average Number of Shares Outstanding | ||||||
Stock-based compensation expense | 2,200 | 1,641 | 1,274 | |||
Sales and marketing | ||||||
Weighted Average Number of Shares Outstanding | ||||||
Stock-based compensation expense | 715 | 552 | 449 | |||
General and administrative | ||||||
Weighted Average Number of Shares Outstanding | ||||||
Stock-based compensation expense | 725 | 465 | 391 | |||
Discontinued operations | ||||||
Weighted Average Number of Shares Outstanding | ||||||
Stock-based compensation expense | $104 | $216 | $219 | |||
[1] | Year Ended December 31, 2012 2013 2014(1) Includes stock-based compensation expense as follows: Cost of revenues$359 $469 $535Research and development1,274 1,641 2,200Sales and marketing449 552 715General and administrative391 465 725Discontinued operations219 216 104Total stock-based compensation expense$2,692 $3,343 $4,279 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $14,444 | $12,920 | $10,737 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | -996 | 89 | 75 |
Available-for-sale investments: | |||
Change in net unrealized gains (losses) | 505 | -392 | 493 |
Less: reclassification adjustment for net gains included in net income | -134 | -162 | -216 |
Net change (net of tax effect of $68, $212, $60) | 371 | -554 | 277 |
Cash flow hedges: | |||
Change in unrealized gains | 651 | 112 | 47 |
Less: reclassification adjustment for gains included in net income | -124 | -60 | -137 |
Net change (net of tax effect of $53, $30, $196) | 527 | 52 | -90 |
Other comprehensive income (loss) | -98 | -413 | 262 |
Comprehensive income | $14,346 | $12,507 | $10,999 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Tax effect related to available-for-sale investments | $60 | $212 | $68 |
Tax effect related to cash flow hedges | $196 | $30 | $53 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Class A and Class B Common Stock, Class C Capital Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings |
In Millions, except Share data in Thousands, unless otherwise specified | ||||
Beginning Balance at Dec. 31, 2011 | $58,145 | $20,264 | $276 | $37,605 |
Beginning Balance (in shares) at Dec. 31, 2011 | 649,790 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued (in shares) | 10,168 | |||
Common stock issued | 736 | 736 | 0 | 0 |
Stock-based compensation expense | 2,692 | 2,692 | 0 | 0 |
Stock-based compensation tax benefits | 166 | 166 | 0 | 0 |
Tax withholding related to vesting of restricted stock units | -1,023 | -1,023 | 0 | 0 |
Net income | 10,737 | 0 | 0 | 10,737 |
Other comprehensive income | 262 | 0 | 262 | 0 |
Ending Balance at Dec. 31, 2012 | 71,715 | 22,835 | 538 | 48,342 |
Ending Balance (in shares) at Dec. 31, 2012 | 659,958 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued (in shares) | 11,706 | |||
Common stock issued | 1,174 | 1,174 | 0 | 0 |
Stock-based compensation expense | 3,343 | 3,343 | 0 | 0 |
Stock-based compensation tax benefits | 449 | 449 | 0 | 0 |
Tax withholding related to vesting of restricted stock units | -1,879 | -1,879 | 0 | 0 |
Net income | 12,920 | 0 | 0 | 12,920 |
Other comprehensive income | -413 | 0 | -413 | 0 |
Ending Balance at Dec. 31, 2013 | 87,309 | 25,922 | 125 | 61,262 |
Ending Balance (in shares) at Dec. 31, 2013 | 671,664 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock issued (in shares) | 8,508 | |||
Common stock issued | 465 | 465 | 0 | 0 |
Stock-based compensation expense | 4,279 | 4,279 | 0 | 0 |
Stock-based compensation tax benefits | 625 | 625 | 0 | 0 |
Tax withholding related to vesting of restricted stock units | -2,524 | -2,524 | 0 | 0 |
Net income | 14,444 | 0 | 0 | 14,444 |
Other comprehensive income | -98 | 0 | -98 | 0 |
Ending Balance at Dec. 31, 2014 | $104,500 | $28,767 | $27 | $75,706 |
Ending Balance (in shares) at Dec. 31, 2014 | 680,172 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income | $14,444 | $12,920 | $10,737 |
Adjustments: | |||
Depreciation expense and loss on disposal of property and equipment | 3,523 | 2,781 | 1,988 |
Amortization and impairment of intangible and other assets | 1,456 | 1,158 | 974 |
Stock-based compensation expense | 4,279 | 3,343 | 2,692 |
Excess tax benefits from stock-based award activities | -648 | -481 | -188 |
Deferred income taxes | -104 | -437 | -266 |
Gain on divestiture of businesses | -740 | -700 | -188 |
Gain on equity interest | -126 | 0 | 0 |
Gain on sale of non-marketable equity investments | -159 | 0 | 0 |
Other | 87 | 106 | -28 |
Changes in assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | -1,641 | -1,307 | -787 |
Income taxes, net | 283 | 401 | 1,492 |
Prepaid revenue share, expenses and other assets | 459 | -930 | -532 |
Accounts payable | 436 | 605 | -499 |
Accrued expenses and other liabilities | 757 | 713 | 762 |
Accrued revenue share | 245 | 254 | 299 |
Deferred revenue | -175 | 233 | 163 |
Net cash provided by operating activities | 22,376 | 18,659 | 16,619 |
Investing activities | |||
Purchases of property and equipment | -10,959 | -7,358 | -3,273 |
Purchases of marketable securities | -56,310 | -45,444 | -33,410 |
Maturities and sales of marketable securities | 51,315 | 38,314 | 35,180 |
Investments in non-marketable equity investments | -1,227 | -569 | -696 |
Cash collateral related to securities lending | 1,403 | -299 | -334 |
Investments in reverse repurchase agreements | -775 | 600 | 45 |
Proceeds from divestiture of businesses | 386 | 2,525 | 0 |
Acquisitions, net of cash acquired, and purchases of intangibles and other assets | -4,888 | -1,448 | -10,568 |
Net cash used in investing activities | -21,055 | -13,679 | -13,056 |
Financing activities | |||
Net payments related to stock-based award activities | -2,069 | -781 | -287 |
Excess tax benefits from stock-based award activities | 648 | 481 | 188 |
Proceeds from issuance of debt, net of costs | 11,625 | 10,768 | 16,109 |
Repayments of debt | -11,643 | -11,325 | -14,781 |
Net cash provided by (used in) financing activities | -1,439 | -857 | 1,229 |
Effect of exchange rate changes on cash and cash equivalents | -433 | -3 | 3 |
Net increase (decrease) in cash and cash equivalents | -551 | 4,120 | 4,795 |
Cash and cash equivalents at beginning of period | 18,898 | 14,778 | 9,983 |
Cash and cash equivalents at end of period | 18,347 | 18,898 | 14,778 |
Supplemental disclosures of cash flow information | |||
Cash paid for taxes | 2,819 | 1,932 | 2,034 |
Cash paid for interest | 86 | 72 | 74 |
Non-cash investing and financing activities: | |||
Fair value of stock-based awards assumed in connection with the acquisition of Motorola | 0 | 0 | 41 |
Leases recorded on the balance sheet during the period | 250 | 258 | 0 |
Notes Receivable | Motorola Mobile | |||
Non-cash investing and financing activities: | |||
Noncash or part noncash consideration received for divestiture | 1,314 | 0 | 0 |
Common Stock | Motorola Mobile | |||
Non-cash investing and financing activities: | |||
Noncash or part noncash consideration received for divestiture | 750 | 0 | 0 |
Common Stock | Motorola Home | |||
Non-cash investing and financing activities: | |||
Noncash or part noncash consideration received for divestiture | $0 | $175 | $0 |
Google_Inc_and_Summary_of_Sign
Google Inc. and Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Google Inc. and Summary of Significant Accounting Policies | Google Inc. and Summary of Significant Accounting Policies | |||||||||||
Nature of Operations | ||||||||||||
We were incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. We generate revenues primarily by delivering relevant, cost-effective online advertising. | ||||||||||||
On April 17, 2013, we sold the Motorola Home business (Motorola Home) to Arris Group, Inc. (Arris). The financial results of Motorola Home are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income for the years ended December 31, 2012 and 2013. See Note 8 for further discussion of the sale. | ||||||||||||
On April 2, 2014, we completed a two-for-one stock split effected in the form of a stock dividend (the Stock Split). All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the Stock Split. See Notes 11 and 12 for additional information about the Stock Split. | ||||||||||||
On October 29, 2014, we sold the Motorola Mobile business (Motorola Mobile) to Lenovo Group Limited (Lenovo). The financial results of Motorola Mobile are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income for the years ended December 31, 2012, 2013, and 2014. See Note 8 for further discussion of the sale. | ||||||||||||
Basis of Consolidation | ||||||||||||
The consolidated financial statements include the accounts of Google Inc. and our subsidiaries. All intercompany balances and transactions have been eliminated. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | ||||||||||||
Revenue Recognition | ||||||||||||
The following table presents our revenues by revenue source (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Advertising revenues: | ||||||||||||
Google websites | $ | 31,221 | $ | 37,422 | $ | 45,085 | ||||||
Google Network Members' websites | 12,465 | 13,125 | 13,971 | |||||||||
Total advertising revenues | 43,686 | 50,547 | 59,056 | |||||||||
Other revenues | 2,353 | 4,972 | 6,945 | |||||||||
Revenues | $ | 46,039 | $ | 55,519 | $ | 66,001 | ||||||
We generate revenues primarily by delivering both performance advertising and brand advertising, and we recognize revenues when the services or products have been provided or delivered, the fees we charge are fixed or determinable, we and our advertisers or other customers understand the specific nature and terms of the agreed upon transactions, and collectability is reasonably assured. | ||||||||||||
Performance advertising creates and delivers relevant ads that users will click, leading to direct engagement with advertisers. Most of our performance advertisers pay us on a cost-per-engagement basis, for example, when a user engages in their ads. Brand advertising enhances users’ awareness of and affinity with advertisers’ products and services, through videos, text, images, and other ads that run across various devices. | ||||||||||||
Google AdWords is our auction-based advertising program that enables performance advertisers to place text-based and display ads on Google websites and our Google Network Members’ websites. Google AdSense refers to the online programs through which we distribute our advertisers’ AdWords ads for display on our Google Network Members’ websites. Most of our customers pay us on a cost-per-click basis, which means that an advertiser pays us only when a user clicks on one of its ads. We also offer advertising on a cost-per-impression basis that enables our brand advertisers to pay us based on the number of times their ads display on Google websites and our Google Network Members’ websites as specified by the advertisers. | ||||||||||||
We recognize as revenues the fees charged to advertisers each time a user clicks on one of the ads that appears next to the search results or content on Google websites or our Google Network Members’ websites. For those advertisers using our cost-per-impression pricing, we recognize as revenues the fees charged to advertisers each time their ads are displayed on Google websites or our Google Network Members’ websites. We report our Google AdSense revenues on a gross basis principally because we are the primary obligor to our advertisers. | ||||||||||||
For hardware product sales, where we sell directly to end customers or through distribution channels, revenue recognition generally occurs when products have been shipped, risk of loss has transferred to the customer, objective evidence exists that customer acceptance provisions have been met, no significant obligations remain and allowances for discounts, price protection, returns and customer incentives can be reasonably and reliably estimated. Recorded revenues are reduced by these allowances. Where these allowances cannot be reasonably and reliably estimated, we recognize revenue at the time the product sells through the distribution channel to the end customer. | ||||||||||||
For the sale of certain third-party products and services, we evaluate whether it is appropriate to recognize revenue based on the gross amount billed to the customers or the net amount earned as revenue share. Generally, when we are primarily obligated in a transaction, are subject to inventory risk or have latitude in establishing prices, or have several but not all of these indicators, revenue is recorded on a gross basis. We generally record the net amounts as revenue earned if we are not primarily obligated and do not have inventory risk or latitude in establishing prices. Such amounts earned are typically determined using a fixed percentage, a fixed fee, or a combination of the two. | ||||||||||||
For arrangements that include multiple deliverables, primarily for products that contain software essential to the hardware products’ functionality and services, we allocate revenue to each unit of accounting based on their relative selling prices. In such circumstances, we use a hierarchy to determine the selling prices to be used for allocating revenue: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price, and (iii) best estimate of the selling price (ESP). VSOE generally exists only when we sell the deliverable separately and is the price actually charged by us for that deliverable. ESPs reflect our best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. | ||||||||||||
We record deferred revenues upon invoicing or when cash payments are received in advance of our performance in the underlying agreement on the accompanying Consolidated Balance Sheets. | ||||||||||||
Cost of Revenues | ||||||||||||
Cost of revenues consists of traffic acquisition costs which are the advertising revenues shared with our Google Network Members and the amounts paid to our distribution partners who distribute our browser or otherwise direct search queries to our website. | ||||||||||||
Additionally, other costs of revenues includes the following: | ||||||||||||
• | Content acquisition costs primarily related to payments to certain content providers from whom we license their video and other content for distribution on YouTube and Google Play (We share most of the fees these sales generate with content providers or pay a fixed fee to these content providers); | |||||||||||
• | The expenses associated with the operation of our data centers (including depreciation, labor, energy, and bandwidth costs); | |||||||||||
• | Inventory costs for hardware we sell; | |||||||||||
• | Stock-based compensation paid to our employees; | |||||||||||
• | Credit card and other transaction fees related to processing customer transactions; and | |||||||||||
• | Amortization of certain intangible assets. | |||||||||||
Stock-based Compensation | ||||||||||||
Restricted stock units (RSUs) are measured based on the fair market values of the underlying stock on the dates of grant. Shares are issued on the vesting dates net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding. We record the liability for withholding amounts to be paid by us primarily as a reduction to additional paid-in capital when paid. | ||||||||||||
For stock option awards outstanding in the periods presented, we determined fair value using the Black-Scholes-Merton (BSM) option pricing model on the dates of grant. | ||||||||||||
We recognize stock-based compensation using the straight-line method over the vesting period. | ||||||||||||
We include as part of cash flows from financing activities the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for options exercised and RSUs vested during the period. During the years ended December 31, 2012, 2013, and 2014, the amount of cash received from the exercise of stock options was $736 million, $1,174 million, and $465 million, respectively, and the total direct tax benefit realized, including the excess tax benefit, from stock-based award activities was $747 million, $1,195 million, and $1,356 million, respectively. We have elected to account for the indirect effects of stock-based awards -- primarily the research and development tax credit -- through the Consolidated Statements of Income. | ||||||||||||
For the years ended December 31, 2012, 2013, and 2014, we recognized stock-based compensation expense from continuing operations and related tax benefits of $2,473 million and $545 million, $3,127 million and $685 million, and $4,175 million and $867 million, respectively. Additionally, net income (loss) from discontinued operations for the years ended December 31, 2012, 2013, and 2014, includes stock-based compensation expense and related tax benefits of $219 million and $57 million, $216 million and $59 million, and $104 million and $30 million, respectively. | ||||||||||||
Certain Risks and Concentrations | ||||||||||||
Our revenues are primarily derived from online advertising, the market for which is highly competitive and rapidly changing. In addition, our revenues are generated from a multitude of vertical market segments in countries around the world. Significant changes in this industry or changes in customer buying or advertiser spending behavior could adversely affect our operating results. | ||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable. Cash equivalents and marketable securities consist primarily of time deposits, money market and other funds, including cash collateral received related to our securities lending program, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments and municipalities in the U.S., corporate securities, mortgage-backed securities, and asset-backed securities. Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts receivable are typically unsecured and are derived from revenues earned from customers located around the world. In 2012, 2013, and 2014, we generated approximately 46%, 45%, and 43% of our revenues from customers based in the U.S., with the majority of customers outside of the U.S. located in Europe and Japan. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend, but generally we do not require collateral from our customers. We maintain reserves for estimated credit losses and these losses have generally been within our expectations. | ||||||||||||
No individual customer or groups of affiliated customers represented more than 10% of our revenues in 2012, 2013, or 2014. | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||
Our financial assets and financial liabilities that include cash equivalents, marketable securities, and foreign currency and interest rate derivative contracts are measured and recorded at fair value on a recurring basis. We measure certain other assets including our non-marketable equity securities at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value and are therefore not recorded at fair value. | ||||||||||||
Cash, Cash Equivalents, and Marketable Securities | ||||||||||||
We invest our excess cash primarily in time deposits, money market and other funds, including cash collateral received related to our securities lending program, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments and municipalities in the U.S., corporate securities, mortgage-backed securities, and asset-backed securities. | ||||||||||||
We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities. | ||||||||||||
We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as available-for-sale. We may or may not hold securities with stated maturities greater than 12 months until maturity. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell these securities prior to their stated maturities. As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption marketable securities in the accompanying Consolidated Balance Sheets. We carry these securities at fair value, and report the unrealized gains and losses, net of taxes, as a component of stockholders’ equity, except for unrealized losses determined to be other-than-temporary, which we record within interest and other income, net. We determine any realized gains or losses on the sale of marketable securities on a specific identification method, and we record such gains and losses as a component of interest and other income, net. | ||||||||||||
Non-Marketable Equity Securities | ||||||||||||
We have accounted for non-marketable equity securities either under the equity or cost method. Investments through which we exercise significant influence but do not have control over the investee are accounted for under the equity method. Investments through which we are not able to exercise significant influence over the investee are accounted for under the cost method. | ||||||||||||
Impairment of Marketable and Non-Marketable Securities | ||||||||||||
We periodically review our marketable and non-marketable securities for impairment. If we conclude that any of these investments are impaired, we determine whether such impairment is other-than-temporary. Factors we consider to make such determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and our intent to sell. For marketable debt securities, we also consider whether (1) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result of credit losses. If any impairment is considered other-than-temporary, we will write down the asset to its fair value and record the corresponding charge as interest and other income, net. | ||||||||||||
Accounts Receivable | ||||||||||||
We record accounts receivable at the invoiced amount and we normally do not charge interest. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review the accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. We also maintain a sales allowance to reserve for potential credits issued to customers. We determine the amount of the reserve based on historical credits issued. | ||||||||||||
Property and Equipment | ||||||||||||
We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets, generally two to five years. We depreciate buildings over periods up to 25 years. We amortize leasehold improvements over the shorter of the remaining lease term or the estimated useful lives of the assets. Construction in progress is related to the construction or development of property and equipment that have not yet been placed in service for our intended use. Depreciation for equipment commences once it is placed in service and depreciation for buildings and leasehold improvements commences once they are ready for our intended use. Land is not depreciated. | ||||||||||||
Software Development Costs | ||||||||||||
We expense software development costs, including costs to develop software products or the software component of products to be marketed to external users, before technological feasibility of such products is reached. We have determined that technological feasibility is reached shortly before the release of those products and as a result, the development costs incurred after the establishment of technological feasibility and before the release of those products are not material. | ||||||||||||
Software development costs also include costs to develop software programs to be used solely to meet our internal needs and cloud based applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Costs capitalized for developing such software applications were not material for the periods presented. | ||||||||||||
Business Combinations | ||||||||||||
We include the results of operations of the businesses that we acquire as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. | ||||||||||||
Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets | ||||||||||||
We review property and equipment, long-term prepayments and intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. In 2014, we recorded impairments of intangible assets, including an impairment of $378 million in the third quarter of 2014 related to a patent licensing royalty asset. | ||||||||||||
We test our goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. No goodwill impairment has been identified in any of the years presented. | ||||||||||||
Intangible assets with definite lives are amortized over their estimated useful lives. We amortize our acquired intangible assets on a straight-line basis with definite lives over periods ranging from one to twelve years. | ||||||||||||
Income Taxes | ||||||||||||
We recognize income taxes under the liability method. We recognize deferred income taxes for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which differences are expected to reverse. We recognize the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. | ||||||||||||
Foreign Currency | ||||||||||||
Generally, the functional currency of our international subsidiaries is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates for the annual period derived from month-end spot rates for revenues, costs, and expenses. We record translation gains and losses in accumulated other comprehensive income as a component of stockholders’ equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange losses in interest and other income, net. | ||||||||||||
Advertising and Promotional Expenses | ||||||||||||
We expense advertising and promotional costs in the period in which they are incurred. For the years ended December 31, 2012, 2013 and 2014, advertising and promotional expenses totaled approximately $1,992 million, $2,389 million, and $3,004 million. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
In April 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-08 (ASU 2014-08) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. We do not expect the impact of the adoption of ASU 2014-08 to be material to our consolidated financial statements. | ||||||||||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. | ||||||||||||
In June 2014, the FASB issued Accounting Standards Update No. 2014-10 (ASU 2014-10) "Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation". ASU 2014-10 removes the definition of a development stage entity from the Master Glossary of the ASC thereby removing the financial reporting distinction between development stage entities and other reporting entities. The amendment eliminating the exception to the sufficiency-of-equity-at-risk criterion for development stage entities should be applied retrospectively for annual reporting periods beginning after December 15, 2015, and interim periods therein. Early application of these amendments is permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2014-10 on our consolidated financial statements. | ||||||||||||
Prior Period Reclassifications | ||||||||||||
Reclassifications of prior period amounts related to discontinued operations as a result of the sale of Motorola Home and Motorola Mobile businesses, and share and per share amounts due to the Stock Split have been made to conform to the current period presentation. |
Financial_Instruments
Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||
We measure our cash equivalents, marketable securities, and foreign currency and interest rate derivative contracts at fair value on a recurring basis. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. Assets and liabilities recorded at fair value are measured and classified in accordance with a three-tier fair value hierarchy based on the observability of the inputs available in the market used to measure fair value: | |||||||||||||||||||||||||||||
Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||||||||||||||
Level 2 - Include other inputs that are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant inputs are observable in the market or can be derived from observable market data. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs including interest rate curves, foreign exchange rates, and credit ratings. | |||||||||||||||||||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activities. | |||||||||||||||||||||||||||||
The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||||||||||||||||||||
We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. We classify our foreign currency and interest rate derivative contracts primarily within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. | |||||||||||||||||||||||||||||
Cash, Cash Equivalents, and Marketable Securities | |||||||||||||||||||||||||||||
The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of December 31, 2013 and December 31, 2014 (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 9,909 | $ | 0 | $ | 0 | $ | 9,909 | $ | 9,909 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 4,428 | 0 | 0 | 4,428 | 4,428 | 0 | |||||||||||||||||||||||
U.S. government notes | 18,276 | 23 | (37 | ) | 18,262 | 2,501 | 15,761 | ||||||||||||||||||||||
Marketable equity securities | 197 | 167 | 0 | 364 | 0 | 364 | |||||||||||||||||||||||
22,901 | 190 | (37 | ) | 23,054 | 6,929 | 16,125 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits(1) | 1,207 | 0 | 0 | 1,207 | 790 | 417 | |||||||||||||||||||||||
Money market and other funds(2) | 1,270 | 0 | 0 | 1,270 | 1,270 | 0 | |||||||||||||||||||||||
U.S. government agencies | 4,575 | 3 | (3 | ) | 4,575 | 0 | 4,575 | ||||||||||||||||||||||
Foreign government bonds | 1,502 | 5 | (26 | ) | 1,481 | 0 | 1,481 | ||||||||||||||||||||||
Municipal securities | 2,904 | 9 | (36 | ) | 2,877 | 0 | 2,877 | ||||||||||||||||||||||
Corporate debt securities | 7,300 | 162 | (67 | ) | 7,395 | 0 | 7,395 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 5,969 | 27 | (187 | ) | 5,809 | 0 | 5,809 | ||||||||||||||||||||||
Asset-backed securities | 1,142 | 0 | (2 | ) | 1,140 | 0 | 1,140 | ||||||||||||||||||||||
25,869 | 206 | (321 | ) | 25,754 | 2,060 | 23,694 | |||||||||||||||||||||||
Total | $ | 58,679 | $ | 396 | $ | (358 | ) | $ | 58,717 | $ | 18,898 | $ | 39,819 | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 9,863 | $ | 0 | $ | 0 | $ | 9,863 | $ | 9,863 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 2,532 | 0 | 0 | 2,532 | 2,532 | 0 | |||||||||||||||||||||||
U.S. government notes | 15,320 | 37 | (4 | ) | 15,353 | 1,128 | 14,225 | ||||||||||||||||||||||
Marketable equity securities | 988 | 428 | (64 | ) | 1,352 | 0 | 1,352 | ||||||||||||||||||||||
18,840 | 465 | (68 | ) | 19,237 | 3,660 | 15,577 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits(1) | 2,409 | 0 | 0 | 2,409 | 2,309 | 100 | |||||||||||||||||||||||
Money market and other funds(2) | 1,762 | 0 | 0 | 1,762 | 1,762 | 0 | |||||||||||||||||||||||
Fixed-income bond funds(3) | 385 | 0 | (38 | ) | 347 | 0 | 347 | ||||||||||||||||||||||
U.S. government agencies | 2,327 | 8 | (1 | ) | 2,334 | 750 | 1,584 | ||||||||||||||||||||||
Foreign government bonds | 1,828 | 22 | (10 | ) | 1,840 | 0 | 1,840 | ||||||||||||||||||||||
Municipal securities | 3,370 | 33 | (6 | ) | 3,397 | 3 | 3,394 | ||||||||||||||||||||||
Corporate debt securities | 11,499 | 114 | (122 | ) | 11,491 | 0 | 11,491 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 8,196 | 109 | (42 | ) | 8,263 | 0 | 8,263 | ||||||||||||||||||||||
Asset-backed securities | 3,456 | 1 | (5 | ) | 3,452 | 0 | 3,452 | ||||||||||||||||||||||
35,232 | 287 | (224 | ) | 35,295 | 4,824 | 30,471 | |||||||||||||||||||||||
Total | $ | 63,935 | $ | 752 | $ | (292 | ) | $ | 64,395 | $ | 18,347 | $ | 46,048 | ||||||||||||||||
(1) | The majority of our time deposits are foreign deposits. | ||||||||||||||||||||||||||||
(2) | The balances as of December 31, 2013 and December 31, 2014 were related to cash collateral received in connection with our securities lending program, which was invested in reverse repurchase agreements maturing within three months. See below for further discussion of this program. | ||||||||||||||||||||||||||||
(3) | Fixed-income bond funds consist of mutual funds that primarily invest in corporate and government bonds. | ||||||||||||||||||||||||||||
During the second quarter of 2013, we received approximately $175 million in Arris' common stock (10.6 million shares) in connection with the disposition of Motorola Home and during the fourth quarter of 2014, we received $750 million in Lenovo ordinary shares (519.1 million shares) in connection with the disposition of Motorola Mobile (see details in Note 8). These shares are accounted for as available-for-sale marketable equity securities. | |||||||||||||||||||||||||||||
We determine realized gains or losses on the sale of marketable securities on a specific identification method. We recognized gross realized gains of $383 million, $416 million, and $238 million for the years ended December 31, 2012, 2013, and 2014. We recognized gross realized losses of $101 million, $258 million, and $85 million for the years ended December 31, 2012, 2013, and 2014. We reflect these gains and losses as a component of interest and other income, net, in the accompanying Consolidated Statements of Income. | |||||||||||||||||||||||||||||
The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Due in 1 year | $ | 4,547 | |||||||||||||||||||||||||||
Due in 1 year through 5 years | 24,123 | ||||||||||||||||||||||||||||
Due in 5 years through 10 years | 7,083 | ||||||||||||||||||||||||||||
Due after 10 years | 8,596 | ||||||||||||||||||||||||||||
Total | $ | 44,349 | |||||||||||||||||||||||||||
The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2013 and December 31, 2014, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||
U.S. government notes | $ | 4,404 | $ | (37 | ) | $ | 0 | $ | 0 | $ | 4,404 | $ | (37 | ) | |||||||||||||||
U.S. government agencies | 496 | (3 | ) | 0 | 0 | 496 | (3 | ) | |||||||||||||||||||||
Foreign government bonds | 899 | (23 | ) | 83 | (3 | ) | 982 | (26 | ) | ||||||||||||||||||||
Municipal securities | 1,210 | (32 | ) | 99 | (4 | ) | 1,309 | (36 | ) | ||||||||||||||||||||
Corporate debt securities | 2,583 | (62 | ) | 69 | (5 | ) | 2,652 | (67 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 4,065 | (167 | ) | 468 | (20 | ) | 4,533 | (187 | ) | ||||||||||||||||||||
Asset-backed securities | 643 | (2 | ) | 0 | 0 | 643 | (2 | ) | |||||||||||||||||||||
Total | $ | 14,300 | $ | (326 | ) | $ | 719 | $ | (32 | ) | $ | 15,019 | $ | (358 | ) | ||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||
U.S. government notes | $ | 4,490 | $ | (4 | ) | $ | 0 | $ | 0 | $ | 4,490 | $ | (4 | ) | |||||||||||||||
U.S. government agencies | 830 | (1 | ) | 0 | 0 | 830 | (1 | ) | |||||||||||||||||||||
Foreign government bonds | 255 | (7 | ) | 43 | (3 | ) | 298 | (10 | ) | ||||||||||||||||||||
Municipal securities | 877 | (3 | ) | 174 | (3 | ) | 1,051 | (6 | ) | ||||||||||||||||||||
Corporate debt securities | 5,851 | (112 | ) | 225 | (10 | ) | 6,076 | (122 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 609 | (1 | ) | 2,168 | (41 | ) | 2,777 | (42 | ) | ||||||||||||||||||||
Asset-backed securities | 2,388 | (4 | ) | 174 | (1 | ) | 2,562 | (5 | ) | ||||||||||||||||||||
Fixed-income bond funds | 347 | (38 | ) | 0 | 0 | 347 | (38 | ) | |||||||||||||||||||||
Marketable equity securities | 690 | (64 | ) | 0 | 0 | 690 | (64 | ) | |||||||||||||||||||||
Total | $ | 16,337 | $ | (234 | ) | $ | 2,784 | $ | (58 | ) | $ | 19,121 | $ | (292 | ) | ||||||||||||||
We periodically review our marketable debt and equity securities for other-than-temporary impairment. We consider factors such as the duration, severity and the reason for the decline in value, the potential recovery period and our intent to sell. For marketable debt securities, we also consider whether (i) it is more likely than not that we will be required to sell the debt securities before recovery of their amortized cost basis, and (ii) the amortized cost basis cannot be recovered as a result of credit losses. During the years ended December 31, 2012, 2013, and 2014, we did not recognize any other-than-temporary impairment loss. | |||||||||||||||||||||||||||||
Non-Marketable Equity Investments | |||||||||||||||||||||||||||||
Our non-marketable equity investments are investments we have made in privately-held companies accounted for under the equity or cost method. As of December 31, 2013 and December 31, 2014, these investments accounted for under the equity method had a carrying value of approximately $1.0 billion and $1.3 billion, respectively, and those investments accounted for under the cost method had a carrying value of $1.0 billion and $1.8 billion, respectively. For investments accounted for under the cost method, we concluded that their fair values exceeded their carrying values as of December 31, 2013 and December 31, 2014. We periodically review our non-marketable equity investments for impairment. No material impairments were recognized for the years ended December 31, 2012, 2013, and 2014. | |||||||||||||||||||||||||||||
Securities Lending Program | |||||||||||||||||||||||||||||
From time to time, we enter into securities lending agreements with financial institutions to enhance investment income. We loan selected securities which are collateralized in the form of cash or securities. Cash collateral is invested in reverse repurchase agreements which are collateralized in the form of securities. | |||||||||||||||||||||||||||||
We classify loaned securities as cash equivalents or marketable securities and record the cash collateral as an asset with a corresponding liability in the accompanying Consolidated Balance Sheets. We classify reverse repurchase agreements maturing within three months as cash equivalents and those longer than three months as receivable under reverse repurchase agreements in the accompanying Consolidated Balance Sheets. For security collateral received, we do not record an asset or liability except in the event of counterparty default. | |||||||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||||||
We recognize derivative instruments as either assets or liabilities in the accompanying Consolidated Balance Sheets at fair value. We record changes in the fair value (i.e., gains or losses) of the derivatives in the accompanying Consolidated Statements of Income as interest and other income, net, as part of revenues, or as a component of accumulated other comprehensive income (AOCI) in the accompanying Consolidated Balance Sheets, as discussed below. | |||||||||||||||||||||||||||||
We enter into foreign currency contracts with financial institutions to reduce the risk that our cash flows and earnings will be adversely affected by foreign currency exchange rate fluctuations. We use certain interest rate derivative contracts to hedge interest rate exposures on our fixed income securities and our anticipated debt issuance. Our program is not used for trading or speculative purposes. | |||||||||||||||||||||||||||||
We enter into master netting arrangements, which reduce credit risk by permitting net settlement of transactions with the same counterparty. To further reduce credit risk, we enter into collateral security arrangements under which the counterparty is required to provide collateral when the net fair value of certain financial instruments fluctuates from contractually established thresholds. We can take possession of the collateral in the event of counterparty default. As of December 31, 2013 and December 31, 2014, we received cash collateral related to the derivative instruments under our collateral security arrangements of $35 million and $268 million. | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
We use options designated as cash flow hedges to hedge certain forecasted revenue transactions denominated in currencies other than the U.S. dollar. The notional principal of these contracts was approximately $10.0 billion and $13.6 billion as of December 31, 2013 and December 31, 2014. These foreign exchange contracts have maturities of 36 months or less. | |||||||||||||||||||||||||||||
In 2012, we entered into forward-starting interest rate swaps with a total notional amount of $1.0 billion and terms calling for us to receive interest at a variable rate and to pay interest at a fixed rate, that effectively locked in an interest rate on our anticipated debt issuance of $1.0 billion in 2014. We issued $1.0 billion of unsecured senior notes in February 2014 (See details in Note 3). As a result, we terminated the forward-starting interest rate swaps upon the debt issuance. The gain associated with the termination is reported within Operating Activities in the Consolidated Statement of Cash Flows for the year ended December 31, 2014, consistent with the impact of the hedged item. | |||||||||||||||||||||||||||||
We reflect gain or loss on the effective portion of a cash flow hedge as a component of AOCI and subsequently reclassify cumulative gains and losses to revenues or interest expense when the hedged transactions are recorded. If the hedged transactions become probable of not occurring, the corresponding amounts in AOCI would be immediately reclassified to interest and other income, net. Further, we exclude the change in the time value of the options from our assessment of hedge effectiveness. We record the premium paid or time value of an option on the date of purchase as an asset. Thereafter, we recognize changes to this time value in interest and other income, net. | |||||||||||||||||||||||||||||
As of December 31, 2014, the effective portion of our cash flow hedges before tax effect was $817 million, of which $645 million is expected to be reclassified from AOCI into earnings within the next 12 months. | |||||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||
We use forward contracts designated as fair value hedges to hedge foreign currency risks for our investments denominated in currencies other than the U.S. dollar. We exclude changes in the time value for forward contracts from the assessment of hedge effectiveness. The notional principal of these contracts was $1.2 billion and $1.5 billion as of December 31, 2013 and December 31, 2014. | |||||||||||||||||||||||||||||
Starting in the quarter ended September 30, 2014, we used interest rate swaps designated as fair value hedges to hedge interest rate risk for certain fixed rate securities. The notional principal of these contracts was $175 million as of December 31, 2014. | |||||||||||||||||||||||||||||
Gains and losses on these forward contracts and interest rate swaps are recognized in interest and other income net along with the offsetting losses and gains of the related hedged items. | |||||||||||||||||||||||||||||
Other Derivatives | |||||||||||||||||||||||||||||
Other derivatives not designated as hedging instruments consist of forward and option contracts that we use to hedge intercompany transactions and other monetary assets or liabilities denominated in currencies other than the local currency of a subsidiary. We recognize gains and losses on these contracts, as well as the related costs in interest and other income, net, along with the foreign currency gains and losses on monetary assets and liabilities. The notional principal of foreign exchange contracts outstanding was $9.4 billion and $6.2 billion as of December 31, 2013 and December 31, 2014. | |||||||||||||||||||||||||||||
We also use exchange-traded interest rate futures contracts and “To Be Announced” (TBA) forward purchase commitments of mortgage-backed assets to hedge interest rate risks on certain fixed income securities. The TBA contracts meet the definition of derivative instruments in cases where physical delivery of the assets is not taken at the earliest available delivery date. Our interest rate futures and TBA contracts (together interest rate contracts) are not designated as hedging instruments. We recognize gains and losses on these contracts, as well as the related costs, in interest and other income, net. The gains and losses are generally economically offset by unrealized gains and losses in the underlying available-for-sale securities, which are recorded as a component of AOCI until the securities are sold or other-than-temporarily impaired, at which time the amounts are moved from AOCI into interest and other income, net. The total notional amounts of interest rate contracts outstanding were $13 million and $150 million as of December 31, 2013 and December 31, 2014. | |||||||||||||||||||||||||||||
The fair values of our outstanding derivative instruments were as follows (in millions): | |||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of | Fair Value of | Total Fair | ||||||||||||||||||||||||||
Derivatives | Derivatives Not | Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedging Instruments | Hedging Instruments | ||||||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | $ | 133 | $ | 12 | $ | 145 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 87 | 0 | 87 | |||||||||||||||||||||||||
Total | $ | 220 | $ | 12 | $ | 232 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 0 | $ | 4 | $ | 4 | ||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of | Fair Value of | Total Fair | ||||||||||||||||||||||||||
Derivatives | Derivatives Not | Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedging Instruments | Hedging Instruments | ||||||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | $ | 851 | $ | 0 | $ | 851 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 1 | 0 | 1 | |||||||||||||||||||||||||
Total | $ | 852 | $ | 0 | $ | 852 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 0 | $ | 3 | $ | 3 | ||||||||||||||||||||||
Interest rate contracts | Accrued expenses and other liabilities, current and non-current | 1 | 0 | 1 | |||||||||||||||||||||||||
Total | $ | 1 | $ | 3 | $ | 4 | |||||||||||||||||||||||
The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) is summarized below (in millions): | |||||||||||||||||||||||||||||
Gains (Losses) Recognized in OCI | |||||||||||||||||||||||||||||
on Derivatives Before Tax Effect (Effective Portion) | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | 2012 | 2013 | 2014 | ||||||||||||||||||||||||||
Foreign exchange contracts | $ | 73 | $ | 92 | $ | 929 | |||||||||||||||||||||||
Interest rate contracts | 1 | 86 | (31 | ) | |||||||||||||||||||||||||
Total | $ | 74 | $ | 178 | $ | 898 | |||||||||||||||||||||||
Gains Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Location | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Foreign exchange contracts | Revenues | $ | 217 | $ | 95 | $ | 171 | ||||||||||||||||||||||
Interest rate contracts | Interest and other income, net | 0 | 0 | $ | 4 | ||||||||||||||||||||||||
Total | $ | 217 | $ | 95 | $ | 175 | |||||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives (Amount | |||||||||||||||||||||||||||||
Excluded from Effectiveness Testing and Ineffective Portion) (1) | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Location | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (447 | ) | $ | (280 | ) | $ | (279 | ) | |||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and other income, net | 0 | 0 | $ | 4 | ||||||||||||||||||||||||
Total | $ | (447 | ) | $ | (280 | ) | $ | (275 | ) | ||||||||||||||||||||
-1 | Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented. | ||||||||||||||||||||||||||||
The effect of derivative instruments in fair value hedging relationships on income is summarized below (in millions): | |||||||||||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives(2) | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationship | Location | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (31 | ) | $ | 16 | $ | 115 | |||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Hedged item | Interest and | 23 | (25 | ) | (123 | ) | |||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (8 | ) | $ | (9 | ) | $ | (8 | ) | ||||||||||||||||||||
-2 | Losses related to the amount excluded from effectiveness testing of the hedges were $8 million, $9 million, and $8 million for the years ended December 31, 2012, 2013, and 2014. | ||||||||||||||||||||||||||||
The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions): | |||||||||||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives Not Designated As Hedging Instruments | Location | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (67 | ) | $ | 118 | $ | 237 | |||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and | (6 | ) | 4 | 2 | ||||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (73 | ) | $ | 122 | $ | 239 | ||||||||||||||||||||||
Offsetting of Derivatives, Securities Lending, and Reverse Repurchase Agreements | |||||||||||||||||||||||||||||
We present our derivatives, securities lending and reverse repurchase agreements at gross fair values in the Consolidated Balance Sheets. However, our master netting and other similar arrangements allow net settlements under certain conditions. As of December 31, 2013 and December 31, 2014, information related to these offsetting arrangements was as follows (in millions): | |||||||||||||||||||||||||||||
Offsetting of Assets | |||||||||||||||||||||||||||||
Balance as of December 31, 2013 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Non-Cash Collateral Received | Net Assets Exposed | ||||||||||||||||||||||
Derivatives | $ | 232 | $ | 0 | $ | 232 | $ | (2 | ) | (1) | $ | (35 | ) | $ | (52 | ) | $ | 143 | |||||||||||
Reverse repurchase agreements | 1,370 | 0 | 1,370 | (2) | 0 | 0 | (1,370 | ) | 0 | ||||||||||||||||||||
Total | $ | 1,602 | $ | 0 | $ | 1,602 | $ | (2 | ) | $ | (35 | ) | $ | (1,422 | ) | $ | 143 | ||||||||||||
Balance as of December 31, 2014 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Non-Cash Collateral Received | Net Assets Exposed | ||||||||||||||||||||||
Derivatives | $ | 852 | $ | 0 | $ | 852 | $ | (1 | ) | (1) | $ | (251 | ) | $ | (412 | ) | $ | 188 | |||||||||||
Reverse repurchase agreements | 2,637 | 0 | 2,637 | (2) | 0 | 0 | (2,637 | ) | 0 | ||||||||||||||||||||
Total | $ | 3,489 | $ | 0 | $ | 3,489 | $ | (1 | ) | $ | (251 | ) | $ | (3,049 | ) | $ | 188 | ||||||||||||
(1) The balances at December 31, 2013 and December 31, 2014 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. | |||||||||||||||||||||||||||||
(2) The balances at December 31, 2013 and December 31, 2014 included $1,270 million and $1,762 million recorded in cash and cash equivalents, respectively, and $100 million and $875 million recorded in receivable under reverse repurchase agreements, respectively. | |||||||||||||||||||||||||||||
Offsetting of Liabilities | |||||||||||||||||||||||||||||
Balance as of December 31, 2013 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Non-Cash Collateral Pledged | Net Liabilities | ||||||||||||||||||||||
Derivatives | $ | 4 | $ | 0 | $ | 4 | $ | (2 | ) | (3) | $ | 0 | $ | 0 | $ | 2 | |||||||||||||
Securities lending agreements | 1,374 | 0 | 1,374 | 0 | 0 | (1,357 | ) | 17 | |||||||||||||||||||||
Total | $ | 1,378 | $ | 0 | $ | 1,378 | $ | (2 | ) | $ | 0 | $ | (1,357 | ) | $ | 19 | |||||||||||||
Balance as of December 31, 2014 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Non-Cash Collateral Pledged | Net Liabilities | ||||||||||||||||||||||
Derivatives | $ | 4 | $ | 0 | $ | 4 | $ | (1 | ) | (3) | $ | 0 | $ | 0 | $ | 3 | |||||||||||||
Securities lending agreements | 2,778 | 0 | 2,778 | 0 | 0 | (2,740 | ) | 38 | |||||||||||||||||||||
Total | $ | 2,782 | $ | 0 | $ | 2,782 | $ | (1 | ) | $ | 0 | $ | (2,740 | ) | $ | 41 | |||||||||||||
(3) The balances at December 31, 2013 and December 31, 2014 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | Debt | |||||||
Short-Term Debt | ||||||||
We have a debt financing program of up to $3.0 billion through the issuance of commercial paper. Net proceeds from this program are used for general corporate purposes. As of December 31, 2013 and December 31, 2014, we had $2.0 billion of outstanding commercial paper recorded as short-term debt with a weighted-average interest rate of 0.1% for both periods. In conjunction with this program, we have a $3.0 billion revolving credit facility expiring in July 2016. The interest rate for the credit facility is determined based on a formula using certain market rates. As of December 31, 2013 and December 31, 2014, we were in compliance with the financial covenant in the credit facility, and no amounts were outstanding under the credit facility. The estimated fair value of the short-term debt approximated its carrying value as of December 31, 2013 and December 31, 2014. | ||||||||
Long-Term Debt | ||||||||
We issued $1.0 billion of unsecured senior notes (the "2014 Notes") in February 2014 and $3.0 billion of unsecured senior notes in three tranches (collectively, the "2011 Notes") in May 2011. On May 19, 2014, we repaid $1.0 billion on the first tranche of our 2011 Notes upon their maturity. Additionally, we entered into a capital lease obligation in August 2013. The details of these financing arrangements are described in the table below (in millions): | ||||||||
Outstanding Balance As of December 31, 2013 | Outstanding Balance As of December 31, 2014 | |||||||
Short-term portion of long-term debt: | ||||||||
1.25% Notes due on May 19, 2014 | $ | 1,000 | $ | 0 | ||||
Capital lease obligation | 9 | 10 | ||||||
Total | $ | 1,009 | $ | 10 | ||||
Long-term debt: | ||||||||
2.125% Notes due on May 19, 2016 | 1,000 | 1,000 | ||||||
3.625% Notes due on May 19, 2021 | 1,000 | 1,000 | ||||||
3.375% Notes due on February 25, 2024 | 0 | 1,000 | ||||||
Unamortized discount for the Notes above | (10 | ) | (8 | ) | ||||
Subtotal | 1,990 | 2,992 | ||||||
Capital lease obligation | 246 | 236 | ||||||
Total | $ | 2,236 | $ | 3,228 | ||||
The effective interest yields of the Notes due in 2016, 2021, and 2024 were 2.241%, 3.734% and 3.377%, respectively. Interest on the 2011 and 2014 Notes is payable semi-annually. The 2011 and 2014 Notes rank equally with each other and with all of our other senior unsecured and unsubordinated indebtedness from time to time outstanding. We may redeem the 2011 and 2014 Notes at any time in whole or in part at specified redemption prices. We are not subject to any financial covenants under the 2011 Notes or the 2014 Notes. We used the net proceeds from the issuance of the 2011 Notes to repay a portion of our outstanding commercial paper and for general corporate purposes. We used the net proceeds from the issuance of the 2014 Notes for the repayment of the portion of the principal amount of our 2011 Notes which matured on May 19, 2014 and for general corporate purposes. The total estimated fair value of the 2011 and 2014 Notes was approximately $3.1 billion at both December 31, 2013 and December 31, 2014. The fair value of the outstanding 2011 and 2014 Notes was determined based on observable market prices of identical instruments in less active markets and is categorized accordingly as Level 2 in the fair value hierarchy. | ||||||||
In August 2013, we entered into a capital lease obligation on certain property expiring in 2028 with an option to purchase the property in 2016. The effective rate of the capital lease obligation approximates the market rate. The estimated fair value of the capital lease obligation approximated its carrying value as of December 31, 2013 and December 31, 2014. | ||||||||
As of December 31, 2014, aggregate future principal payments for long-term debt (including short-term portion of long-term debt) and capital lease obligation were as follows (in millions): | ||||||||
Years ending | ||||||||
2015 | $ | 10 | ||||||
2016 | 1,236 | |||||||
2017 | 0 | |||||||
2018 | 0 | |||||||
Thereafter | 2,000 | |||||||
Total | $ | 3,246 | ||||||
Balance_Sheet_Components
Balance Sheet Components | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Balance Sheet Components Disclosure [Abstract] | ||||||||||||||||
Balance Sheet Components | Balance Sheet Components | |||||||||||||||
Property and Equipment, Net | ||||||||||||||||
Property and equipment, net consisted of the following (in millions): | ||||||||||||||||
As of December 31, 2013 | As of December 31, 2014 | |||||||||||||||
Information technology assets | $ | 9,094 | $ | 10,918 | ||||||||||||
Land and buildings | 7,488 | 13,326 | ||||||||||||||
Construction in progress | 5,602 | 6,555 | ||||||||||||||
Leasehold improvements | 1,576 | 1,868 | ||||||||||||||
Furniture and fixtures | 77 | 79 | ||||||||||||||
Total | 23,837 | 32,746 | ||||||||||||||
Less: accumulated depreciation and amortization | 7,313 | 8,863 | ||||||||||||||
Property and equipment, net | $ | 16,524 | $ | 23,883 | ||||||||||||
Property under capital lease with a cost basis of $258 million was included in land and construction in progress as of December 31, 2013 and December 31, 2014. | ||||||||||||||||
Prepaid Revenue Share, Expenses and Other Assets, Non-Current | ||||||||||||||||
Note Receivable | ||||||||||||||||
In connection with the sale of our Motorola Mobile business on October 29, 2014 (see Note 8 for additional information), we received an interest-free, three-year prepayable promissory note (the "Note Receivable") due October 2017 from Lenovo. The Note Receivable is included in prepaid revenue share, expenses and other assets, non-current on our Consolidated Balance Sheets. Based on the general market conditions and the credit quality of Lenovo, we discounted the Note Receivable at an effective interest rate of 4.5% as shown in the table below (in millions): | ||||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Principal of the Note Receivable | $ | 1,500 | ||||||||||||||
Less: unamortized discount for the Note Receivable | (175 | ) | ||||||||||||||
Total | $ | 1,325 | ||||||||||||||
As of December 31, 2014, we did not recognize any valuation allowance on the Note Receivable. | ||||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
The components of AOCI, net of tax, were as follows (in millions): | ||||||||||||||||
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Investments | Unrealized Gains on Cash Flow Hedges | Total | |||||||||||||
Balance as of December 31, 2012 | $ | (73 | ) | $ | 604 | $ | 7 | $ | 538 | |||||||
Other comprehensive income (loss) before reclassifications | 89 | (392 | ) | 112 | (191 | ) | ||||||||||
Amounts reclassified from AOCI | 0 | (162 | ) | (60 | ) | (222 | ) | |||||||||
Other comprehensive income (loss) | 89 | (554 | ) | 52 | (413 | ) | ||||||||||
Balance as of December 31, 2013 | $ | 16 | $ | 50 | $ | 59 | $ | 125 | ||||||||
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Investments | Unrealized Gains on Cash Flow Hedges | Total | |||||||||||||
Balance as of December 31, 2013 | $ | 16 | $ | 50 | $ | 59 | $ | 125 | ||||||||
Other comprehensive income (loss) before reclassifications | (996 | ) | 505 | 651 | 160 | |||||||||||
Amounts reclassified from AOCI | 0 | (134 | ) | (124 | ) | (258 | ) | |||||||||
Other comprehensive income (loss) | (996 | ) | 371 | 527 | (98 | ) | ||||||||||
Balance as of December 31, 2014 | $ | (980 | ) | $ | 421 | $ | 586 | $ | 27 | |||||||
The effects on net income of amounts reclassified from AOCI were as follows (in millions): | ||||||||||||||||
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | ||||||||||||||||
Year ended December 31 | ||||||||||||||||
AOCI Components | Location | 2013 | 2014 | |||||||||||||
Unrealized gains on available-for-sale investments | ||||||||||||||||
Interest and other income, net | $ | 158 | $ | 153 | ||||||||||||
Net income (loss) from discontinued operations | 43 | 0 | ||||||||||||||
Provision for income taxes | (39 | ) | (19 | ) | ||||||||||||
Net of tax | $ | 162 | $ | 134 | ||||||||||||
Unrealized gains on cash flow hedges | ||||||||||||||||
Foreign exchange contracts | Revenues | $ | 95 | $ | 171 | |||||||||||
Interest rate contracts | Interest and other income, net | 0 | 4 | |||||||||||||
Provision for income taxes | (35 | ) | (51 | ) | ||||||||||||
Net of tax | $ | 60 | $ | 124 | ||||||||||||
Total amount reclassified, net of tax | $ | 222 | $ | 258 | ||||||||||||
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions |
2014 Acquisitions | |
Nest | |
In February 2014, we completed the acquisition of Nest Labs, Inc. (Nest), a company whose mission is to reinvent devices in the home such as thermostats and smoke alarms. Prior to this transaction, we had an approximately 12% ownership interest in Nest. The acquisition is expected to enhance Google's suite of products and services and allow Nest to continue to innovate upon devices in the home, making them more useful, intuitive, and thoughtful, and to reach more users in more countries. | |
Of the total $2.6 billion purchase price and the fair value of our previously held equity interest of $152 million, $51 million was cash acquired, $430 million was attributed to intangible assets, $2.3 billion was attributed to goodwill, and $84 million was attributed to net liabilities assumed. The goodwill of $2.3 billion is primarily attributable to synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. | |
This transaction is considered a “step acquisition” under GAAP whereby our ownership interest in Nest held before the acquisition was remeasured to fair value at the date of the acquisition. Such fair value was estimated by using discounted cash flow valuation methodologies. Inputs used in the methodologies primarily included projected future cash flows, discounted at a rate commensurate with the risk involved. The gain of $103 million as a result of remeasurement is included in interest and other income, net on our Consolidated Statements of Income for the year ended December 31, 2014. | |
Dropcam | |
In July 2014, Nest completed the acquisition of Dropcam, Inc. (Dropcam), a company that enables consumers and businesses to monitor their homes and offices via video, for approximately $517 million in cash. With Dropcam on board, Nest expects to continue to reinvent products that will help shape the future of the connected home. Of the total purchase price of $517 million, $11 million was cash acquired, $55 million was attributed to intangible assets, $452 million was attributed to goodwill, and $1 million was attributed to net liabilities assumed. The goodwill of $452 million is primarily attributable to synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. | |
Skybox | |
In August 2014, we completed the acquisition of Skybox Imaging, Inc. (Skybox), a satellite imaging company, for approximately $478 million in cash. We expect the acquisition to keep Google Maps accurate with up-to-date imagery and, over time, improve internet access and disaster relief. Of the total purchase price of $478 million, $6 million was cash acquired, $69 million was attributed to intangible assets, $388 million was attributed to goodwill, and $15 million was attributed to net assets acquired. The goodwill of $388 million is primarily attributable to the synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. | |
Other Acquisitions | |
During the year ended December 31, 2014, we completed other acquisitions and purchases of intangible assets for total consideration of approximately $1,466 million, which includes the fair value of our previously held equity interest of $33 million. In aggregate, $65 million was cash acquired, $405 million was attributed to intangible assets, $1,045 million was attributed to goodwill, and $49 million was attributed to net liabilities assumed. These acquisitions generally enhance the breadth and depth of our offerings, as well as expanding our expertise in engineering and other functional areas. The amount of goodwill expected to be deductible for tax purposes is approximately $55 million. | |
Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated results of operations, either individually or in aggregate. | |
For all acquisitions completed during the year ended December 31, 2014, patents and developed technology have a weighted-average useful life of 5.1 years, customer relationships have a weighted-average useful life of 4.5 years, and trade names and other have a weighted-average useful life of 6.9 years. | |
2013 Acquisitions | |
In June 2013, we completed our acquisition of Waze Limited (Waze), a provider of a mobile map application which provides turn-by-turn navigation and real-time traffic updates powered by incidents and route information submitted by a community of users, for a total cash consideration of $969 million. The acquisition is expected to enhance our customers' user experience by offering real time traffic information to meet users' daily navigation needs. Of the total purchase price, $841 million was attributed to goodwill and $193 million was attributed to intangible assets, offset by $65 million of other net liabilities assumed. The goodwill of $841 million is primarily attributable to the synergies expected to arise after the acquisition. Goodwill is not expected to be deductible for tax purposes. | |
During the year ended December 31, 2013, we completed other acquisitions and purchases of intangible assets for a total consideration of approximately $489 million, of which $268 million was attributed to intangible assets, $238 million to goodwill, and $17 million to net liabilities assumed. These acquisitions generally enhance the breadth and depth of our expertise in engineering and other functional areas, our technologies, and our product offerings. The amount of goodwill expected to be deductible for tax purposes is approximately $38 million. | |
Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated results of operations, either individually or in aggregate. | |
For all acquisitions completed during the year ended December 31, 2013, patents and developed technology have a weighted-average useful life of 4.8 years, customer relationships have a weighted-average useful life of 5.5 years, and trade names and other have a weighted-average useful life of 3.5 years. |
Collaboration_Agreement
Collaboration Agreement | 12 Months Ended |
Dec. 31, 2014 | |
Research and Development [Abstract] | |
Collaboration Agreement | Collaboration Agreement |
On September 18, 2013, we announced the formation of Calico, a life science company with a mission to harness advanced technologies to increase our understanding of the biology that controls lifespan. Calico's results of operations and statement of financial position are included in our consolidated financial statements. As of December 31, 2014, Google has contributed $240 million to Calico in exchange for Calico convertible preferred units. As of December 31, 2014, Google has also committed to fund an additional $490 million on an as-needed basis. | |
In September 2014, AbbVie Inc. (AbbVie) and Calico announced a research and development collaboration intended to help both companies discover, develop, and bring to market new therapies for patients with age-related diseases, including for neurodegeneration and cancer. As of December 31, 2014, AbbVie and Calico have each contributed $250 million and committed up to an additional $500 million to fund the collaboration pursuant to the agreement. Calico will use its scientific expertise to establish a world-class research and development facility, with a focus on drug discovery and early drug development; and AbbVie will provide scientific and clinical development support and its commercial expertise to bring new discoveries to market. Both companies will share costs and profits equally. AbbVie's contribution has been recorded as a liability on Calico's financial statements, which is reduced and reflected as a reduction to research and development expense as eligible research and development costs are incurred by Calico over the next few years. | |
On January 15, 2015, AbbVie contributed an additional $500 million to Calico which reflects the remainder of its $750 million commitment to Calico. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |||||||||||
Goodwill | ||||||||||||
The changes in the carrying amount of goodwill for the year ended December 31, 2014 were as follows (in millions): | ||||||||||||
Balance as of December 31, 2013 | $ | 11,492 | ||||||||||
Goodwill acquired | 4,208 | |||||||||||
Goodwill disposed | (43 | ) | ||||||||||
Goodwill adjustment | (58 | ) | ||||||||||
Balance as of December 31, 2014 | $ | 15,599 | ||||||||||
Other Intangible Assets | ||||||||||||
Information regarding our purchased intangible assets is as follows (in millions): | ||||||||||||
As of December 31, 2013 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Amount | |||||||||||
Patents and developed technology | $ | 7,282 | $ | 2,102 | $ | 5,180 | ||||||
Customer relationships | 1,770 | 1,067 | 703 | |||||||||
Trade names and other | 534 | 351 | 183 | |||||||||
Total | $ | 9,586 | $ | 3,520 | $ | 6,066 | ||||||
As of December 31, 2014 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
Patents and developed technology | $ | 6,547 | $ | 2,513 | $ | 4,034 | ||||||
Customer relationships | 1,410 | 1,168 | 242 | |||||||||
Trade names and other | 696 | 365 | 331 | |||||||||
Total | $ | 8,653 | $ | 4,046 | $ | 4,607 | ||||||
Patents and developed technology, customer relationships, and trade names and other have weighted-average useful lives from the date of purchase of 7.9 years, 6.0 years, and 5.7 years, respectively. Amortization expense relating to our purchased intangible assets was $744 million, $1,011 million, and $1,079 million for the years ended December 31, 2012, 2013, and 2014. | ||||||||||||
Additionally, we recorded an impairment charge in other cost of revenues of $378 million related to a patent licensing royalty asset acquired in connection with the Motorola acquisition, which Google retained subsequent to the sale of Motorola Mobile. The asset was determined to be impaired due to prolonged decreased royalty payments and unpaid interest owed and was written down to its fair value. Fair value was determined based on a discounted cash flow method and reflects estimated future cash flows associated with the patent licensing royalty asset at the measurement date and falls within level 3 in fair value hierarchy. | ||||||||||||
As of December 31, 2014, expected amortization expense for our purchased intangible assets for each of the next five years and thereafter was as follows (in millions): | ||||||||||||
2015 | $ | 865 | ||||||||||
2016 | 784 | |||||||||||
2017 | 704 | |||||||||||
2018 | 633 | |||||||||||
2019 | 524 | |||||||||||
Thereafter | 1,097 | |||||||||||
$ | 4,607 | |||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||
Discontinued Operations | Discontinued Operations | |||||||||||
Motorola Mobile | ||||||||||||
On October 29, 2014, we closed the sale of the Motorola Mobile business to Lenovo for a total purchase price of approximately $2.9 billion (subject to certain adjustments), including $1.4 billion paid at close, comprised of $660 million in cash and $750 million in Lenovo ordinary shares (519.1 million shares). The remaining $1.5 billion was paid in the form of an interest-free, three-year prepayable promissory note. | ||||||||||||
We maintain ownership of the vast majority of the Motorola Mobile patent portfolio, including pre-closing patent applications and invention disclosures, which we licensed to Motorola Mobile for its continued operations. Additionally, in connection with the sale, we agreed to indemnify Lenovo for certain potential liabilities of the Motorola Mobile business, for which we recorded a liability of $130 million as of December 31, 2014. | ||||||||||||
The sale resulted in a gain of $740 million, net of tax, which was presented as part of net income from discontinued operations in the Consolidated Statements of Income for the year ended December 31, 2014. Incremental to this net gain, we recognized an additional income of $254 million, net of tax, in connection with certain IP licensing arrangements between the parties, included as part of net income from discontinued operations on the Consolidated Statements of Income for the year ended December 31, 2014. | ||||||||||||
The financial results of Motorola Mobile through the date of divestiture are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income. The following table presents financial results of the Motorola Mobile business included in net income (loss) from discontinued operations for the years ended December 31, 2012, 2013 and 2014 (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 (1) | ||||||||||
Revenues | $ | 4,136 | $ | 4,306 | $ | 5,486 | ||||||
Loss from discontinued operations before income taxes | (1,083 | ) | (1,403 | ) | (177 | ) | ||||||
Benefits from/(Provision for) income taxes | 318 | 270 | (47 | ) | ||||||||
Gain on disposal | 0 | 0 | 740 | |||||||||
Net (loss) income from discontinued operations | $ | (765 | ) | $ | (1,133 | ) | $ | 516 | ||||
(1) The operating results of Motorola Mobile were included in our Consolidated Statements of Income from January 1, 2014 through October 29, 2014, the date of divestiture. | ||||||||||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions): | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 160 | ||||||||||
Accounts receivable | 1,103 | |||||||||||
Inventories | 217 | |||||||||||
Prepaid expenses and other current assets | 357 | |||||||||||
Prepaid expenses and other assets, non-current | 290 | |||||||||||
Property and equipment, net | 542 | |||||||||||
Intangible assets, net | 985 | |||||||||||
Goodwill | 43 | |||||||||||
Total assets | $ | 3,697 | ||||||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 1,238 | ||||||||||
Accrued compensation and benefits | 163 | |||||||||||
Accrued expenses and other current liabilities | 10 | |||||||||||
Deferred revenue, current | 165 | |||||||||||
Other long-term liabilities | 250 | |||||||||||
Total liabilities | $ | 1,826 | ||||||||||
Motorola Home | ||||||||||||
On April 17, 2013, we sold the Motorola Home business to Arris for consideration of approximately $2,412 million in cash, including cash of $2,238 million received at the date of close and certain post-close adjustments of $174 million received in the third quarter of 2013, and approximately $175 million in Arris' common stock (10.6 million shares). Subsequent to the transaction, we own approximately 7.8% of the outstanding shares of Arris. Additionally, in connection with the disposition, we agreed to indemnify Arris for potential liability from certain intellectual property infringement litigation, for which we recorded an indemnification liability of $175 million, the majority of which was settled subsequent to the disposition. | ||||||||||||
The disposition resulted in a net gain of $757 million, which was presented as part of net income from discontinued operations in the Consolidated Statements of Income for the year ended December 31, 2013. | ||||||||||||
The financial results of Motorola Home through the date of divestiture are presented as net income (loss) from discontinued operations on the Consolidated Statement of Income. The following table presents financial results of the Motorola Home business included in net income (loss) from discontinued operations for the years ended December 31, 2012 and 2013 (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 (1) | |||||||||||
Revenues | $ | 2,028 | $ | 804 | ||||||||
Loss from discontinued operations before income taxes | (22 | ) | (67 | ) | ||||||||
(Provision for)/Benefits from income taxes | (29 | ) | 16 | |||||||||
Gain on disposal | 0 | 757 | ||||||||||
Net (loss) income from discontinued operations | $ | (51 | ) | $ | 706 | |||||||
(1) The operating results of Motorola Home were included in our Consolidated Statements of Income from January 1, 2013 through April 17, 2013, the date of divestiture. | ||||||||||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions): | ||||||||||||
Assets: | ||||||||||||
Accounts receivable | $ | 424 | ||||||||||
Inventories | 228 | |||||||||||
Deferred income taxes, net | 144 | |||||||||||
Prepaid and other current assets | 152 | |||||||||||
Property and equipment, net | 282 | |||||||||||
Intangible assets, net | 701 | |||||||||||
Other assets, non-current | 182 | |||||||||||
Total assets | $ | 2,113 | ||||||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 169 | ||||||||||
Accrued expenses and other liabilities | 289 | |||||||||||
Total liabilities | $ | 458 | ||||||||||
Interest_and_Other_Income_Net
Interest and Other Income, Net | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Interest and Other Income, Net | Interest and Other Income, Net | |||||||||||
The components of interest and other income, net, were as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Interest income | $ | 700 | $ | 766 | $ | 746 | ||||||
Interest expense | (85 | ) | (81 | ) | (101 | ) | ||||||
Realized gains on available-for-sale investments, net | 282 | 158 | 153 | |||||||||
Foreign currency exchange losses (1) | (514 | ) | (379 | ) | (402 | ) | ||||||
Realized gain on equity interest | 0 | 0 | 126 | |||||||||
Realized gain on non-marketable equity investments | 0 | 0 | 159 | |||||||||
Gain (loss) on divestiture of businesses (2) | 188 | (57 | ) | 0 | ||||||||
Other income, net | 64 | 89 | 82 | |||||||||
Interest and other income, net | $ | 635 | $ | 496 | $ | 763 | ||||||
(1) Includes net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency, net of those recognized on foreign exchange contracts. We recorded net foreign currency transaction losses of $61 million, $121 million, and $107 million in 2012, 2013, and 2014, respectively. | ||||||||||||
(2) Gain on divestiture of Motorola Home business was included in net income (loss) from discontinued operations for the year ended December 31, 2013. Gain on divestiture of Motorola Mobile business was included in net income (loss) from discontinued operations for the year ended December 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||
Operating Leases | ||||||||||||
We have entered into various non-cancelable operating lease agreements for certain of our offices, land, and data centers throughout the world with original lease periods expiring primarily between 2015 and 2063. We are committed to pay a portion of the actual operating expenses under certain of these lease agreements. These operating expenses are not included in the table below. Certain of these arrangements have free or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis. | ||||||||||||
As of December 31, 2014, future minimum payments under non-cancelable operating leases, net of sublease income amounts, were as follows over each of the next five years and thereafter (in millions): | ||||||||||||
Operating | Sub-lease | Net | ||||||||||
Leases | Income | Operating | ||||||||||
Leases | ||||||||||||
2015 | 628 | 30 | 598 | |||||||||
2016 | 643 | 21 | 622 | |||||||||
2017 | 644 | 10 | 634 | |||||||||
2018 | 597 | 1 | 596 | |||||||||
2019 | 576 | 0 | 576 | |||||||||
Thereafter | 3,157 | 0 | 3,157 | |||||||||
Total minimum payments | $ | 6,245 | $ | 62 | $ | 6,183 | ||||||
Certain leases have adjustments for market provisions. Amounts in the above table represent our best estimates of future payments to be made under these leases. | ||||||||||||
In October 2014, we entered into certain non-cancelable office lease agreements with original lease periods expiring between 2027 and 2028 where we will be the deemed owner for accounting purposes of new construction projects. Future minimum lease payments under the leases total approximately $1.0 billion of which $250 million is included on the Consolidated Balance Sheet as of December 31, 2014 as an asset and corresponding non-current liability, which represents our estimate of construction costs incurred, and the balance of which is included in the schedule above. | ||||||||||||
Rent expense under operating leases, including co-location arrangements, was $417 million, $465 million, and $570 million in 2012, 2013, and 2014. | ||||||||||||
Purchase Obligations | ||||||||||||
As of December 31, 2014, we had $2.7 billion of other non-cancelable contractual obligations, primarily related to video and other content licensing revenue sharing arrangements, data center operations and facility build-outs, as well as certain inventory purchase commitments. | ||||||||||||
Possible Adjustment Payment to Class C Capital Stockholders | ||||||||||||
In accordance with a settlement of litigation involving the authorization to distribute the Class C capital stock, we may be obligated to make a payment (the Possible Adjustment Payment) to holders of the Class C capital stock if, on a volume-weighted average basis, the Class C capital stock trades below the Class A common stock during the first 365 days following the first date the Class C shares traded on NASDAQ (the Lookback Period), payable in cash, Class A common stock, Class C capital stock, or a combination thereof, at the discretion of the board of directors. Had we been obligated to make a payment based on the Volume Weighted Average Price (VWAP) of the Class A and Class C shares from April 3, 2014 through December 31, 2014, the monetary value of the Possible Adjustment Payment would have been approximately $593 million as of December 31, 2014. Please see Note 12 for additional information related to the Possible Adjustment Payment. | ||||||||||||
Letters of Credit | ||||||||||||
As of December 31, 2014, we had unused letters of credit for $842 million. | ||||||||||||
Indemnifications | ||||||||||||
In the normal course of business, to facilitate transactions in our services and products, we indemnify certain parties, including advertisers, Google Network Members, and lessors with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our officers and directors, and our bylaws contain similar indemnification obligations to our agents. | ||||||||||||
It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Additionally, we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows, or financial position. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of December 31, 2014, we did not have any material indemnification claims that were probable or reasonably possible. As part of the sale of Motorola Home and Motorola Mobile businesses, we issued indemnifications for certain potential liabilities. Please see Note 8 for additional information. | ||||||||||||
Legal Matters | ||||||||||||
Antitrust Investigations | ||||||||||||
On November 30, 2010, the European Commission's (EC) Directorate General for Competition opened an investigation into various antitrust-related complaints against us. We believe we have adequately responded to all of the allegations made against us and continue to cooperate with the EC. | ||||||||||||
The Comision Nacional de Defensa de la Competencia in Argentina, the Competition Commission of India, the Taiwan Fair Trade Commission, Brazil's Council for Economic Defense and the Canadian Competition Bureau have also opened investigations into certain of our business practices. | ||||||||||||
The state attorney general from Mississippi issued subpoenas in 2011 and 2012 in an antitrust investigation of our business practices. We have responded to those subpoenas, and we remain willing to cooperate with them if they have any further information requests. In November 2014, the Ohio Attorney General's office informed us that it was closing its antitrust investigation, which began in May 2011, of our business practices. In May 2014, the Texas Attorney General's office informed us that it was closing its antitrust investigation, which began in July 2010, of our business practices. | ||||||||||||
Patent and Intellectual Property Claims | ||||||||||||
We have had patent, copyright, and trademark infringement lawsuits filed against us claiming that certain of our products, services, and technologies infringe the intellectual property rights of others. Adverse results in these lawsuits may include awards of substantial monetary damages, costly royalty or licensing agreements, or orders preventing us from offering certain features, functionalities, products, or services, and may also cause us to change our business practices, and require development of non-infringing products or technologies, which could result in a loss of revenues for us and otherwise harm our business. In addition, the U.S. International Trade Commission (ITC) has increasingly become an important forum to litigate intellectual property disputes because an ultimate loss for a company or its suppliers in an ITC action could result in a prohibition on importing infringing products into the U.S. Since the U.S. is an important market, a prohibition on importation could have an adverse effect on us, including preventing us from importing many important products into the U.S. or necessitating workarounds that may limit certain features of our products. | ||||||||||||
Furthermore, many of our agreements with our customers and partners require us to indemnify them for certain intellectual property infringement claims against them, which would increase our costs as a result of defending such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims. Our customers and partners may discontinue the use of our products, services, and technologies, as a result of injunctions or otherwise, which could result in loss of revenues and adversely impact our business. | ||||||||||||
Other | ||||||||||||
We are also regularly subject to claims, suits, government investigations, and other proceedings involving competition (such as the pending investigation by the EC described above), intellectual property, privacy, tax, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters. Such claims, suits, government investigations, and other proceedings could result in fines, civil or criminal penalties, or other adverse consequences. | ||||||||||||
Certain of our outstanding legal matters include speculative claims for substantial or indeterminate amounts of damages. We record a liability when we believe that it is probable that a loss has been incurred and the amount can be reasonably estimated. If we determine that a loss is possible and a range of the loss can be reasonably estimated, we disclose the range of the possible loss. We evaluate, on a monthly basis, developments in our legal matters that could affect the amount of liability that has been previously accrued, and the matters and related ranges of possible losses disclosed, and make adjustments as appropriate. Significant judgment is required to determine both likelihood of there being and the estimated amount of a loss related to such matters. | ||||||||||||
With respect to our outstanding legal matters, based on our current knowledge, we believe that the amount or range of reasonably possible loss will not, either individually or in the aggregate, have a material adverse effect on our business, consolidated financial position, results of operations, or cash flows. However, the outcome of such legal matters is inherently unpredictable and subject to significant uncertainties. | ||||||||||||
We expense legal fees in the period in which they are incurred. | ||||||||||||
Taxes | ||||||||||||
We are under audit by the Internal Revenue Service (IRS) and various other domestic and foreign tax authorities with regards to income tax and indirect tax matters. We have reserved for potential adjustments to our provision for income taxes and accrual of indirect taxes that may result from examinations by, or any negotiated agreements with, these tax authorities, and we believe that the final outcome of these examinations or agreements will not have a material effect on our results of operations. If events occur which indicate payment of these amounts is unnecessary, the reversal of the liabilities would result in the recognition of benefits in the period we determine the liabilities are no longer necessary. If our estimates of the federal, state, and foreign income tax liabilities and indirect tax liabilities are less than the ultimate assessment, it would result in a further charge to expense. | ||||||||||||
Please see Note 14 for additional information regarding contingencies related to our income taxes. |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Income Per Share | Net Income Per Share | |||||||||||
We compute net income per share of Class A and Class B common stock and Class C capital stock using the two-class method. Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and the effect of potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of stock options, restricted stock units, and other contingently issuable shares. The dilutive effect of outstanding stock options, restricted stock units, and other contingently issuable shares is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares. | ||||||||||||
The rights, including the liquidation and dividend rights, of the holders of our Class A and Class B common stock and Class C capital stock are identical, except with respect to voting. Further, there are a number of safeguards built into our certificate of incorporation, as well as Delaware law, which preclude our board of directors from declaring or paying unequal per share dividends on our Class A and Class B common stock and Class C capital stock. Specifically, Delaware law provides that amendments to our certificate of incorporation which would have the effect of adversely altering the rights, powers, or preferences of a given class of stock must be approved by the class of stock adversely affected by the proposed amendment. In addition, our certificate of incorporation provides that before any such amendment may be put to a stockholder vote, it must be approved by the unanimous consent of our board of directors. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares and Class C capital stock as if the earnings for the year had been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. The net income per share amounts are the same for Class A and Class B common stock and Class C capital stock because the holders of each class are legally entitled to equal per share distributions whether through dividends or in liquidation. Further, as we assume the conversion of Class B common stock in the computation of the diluted net income per share of Class A common stock, the undistributed earnings are equal to net income for that computation. | ||||||||||||
The number of shares and per share amounts for the prior periods presented below have been retroactively restated to reflect the Stock Split. Please see Note 1 and Note 12 for additional information on the Stock Split. | ||||||||||||
The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | ||||||||||||
Class A | Class B | Class C | ||||||||||
Basic net income (loss) per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 4,627 | $ | 1,150 | $ | 5,776 | ||||||
Allocation of undistributed earnings - discontinued operations | (327 | ) | (81 | ) | (408 | ) | ||||||
Total | $ | 4,300 | $ | 1,069 | $ | 5,368 | ||||||
Denominator | ||||||||||||
Number of shares used in per share computation | 262,078 | 65,135 | 327,213 | |||||||||
Basic net income (loss) per share | ||||||||||||
Continuing operations | $ | 17.66 | $ | 17.66 | 17.66 | |||||||
Discontinued operations | (1.25 | ) | (1.25 | ) | (1.25 | ) | ||||||
Basic net income per share | $ | 16.41 | $ | 16.41 | $ | 16.41 | ||||||
Diluted net income (loss) per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 4,627 | $ | 1,150 | $ | 5,776 | ||||||
Reallocation of undistributed earnings as a result of conversion | 1,150 | 0 | 0 | |||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (1 | ) | (17 | ) | 1 | |||||||
Allocation of undistributed earnings - continuing operations | $ | 5,776 | $ | 1,133 | $ | 5,777 | ||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | (327 | ) | $ | (81 | ) | $ | (408 | ) | |||
Reallocation of undistributed earnings as a result of conversion | (81 | ) | 0 | 0 | ||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | 0 | 1 | 0 | |||||||||
Allocation of undistributed earnings - discontinued operations | $ | (408 | ) | $ | (80 | ) | $ | (408 | ) | |||
Denominator | ||||||||||||
Number of shares used in basic computation | 262,078 | 65,135 | 327,213 | |||||||||
Weighted-average effect of dilutive securities | ||||||||||||
Add: | ||||||||||||
Conversion of Class B to Class A common shares outstanding | 65,135 | 0 | 0 | |||||||||
Employee stock options, including warrants issued under | 2,944 | 34 | 2,944 | |||||||||
Transferable Stock Option program | ||||||||||||
Restricted stock units and other contingently issuable shares | 2,148 | 0 | 2,148 | |||||||||
Number of shares used in per share computation | 332,305 | 65,169 | 332,305 | |||||||||
Diluted net income (loss) per share: | ||||||||||||
Continuing operations | $ | 17.39 | $ | 17.39 | $ | 17.39 | ||||||
Discontinued operations | (1.23 | ) | (1.23 | ) | (1.23 | ) | ||||||
Diluted net income per share | $ | 16.16 | $ | 16.16 | $ | 16.16 | ||||||
Year Ended December 31, | ||||||||||||
2013 | ||||||||||||
Class A | Class B | Class C | ||||||||||
Basic net income (loss) per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 5,484 | $ | 1,190 | $ | 6,673 | ||||||
Allocation of undistributed earnings - discontinued operations | (175 | ) | (38 | ) | (214 | ) | ||||||
Total | $ | 5,309 | $ | 1,152 | $ | 6,459 | ||||||
Denominator | ||||||||||||
Number of shares used in per share computation | 273,518 | 59,328 | 332,846 | |||||||||
Basic net income (loss) per share | ||||||||||||
Continuing operations | $ | 20.05 | $ | 20.05 | $ | 20.05 | ||||||
Discontinued operations | (0.64 | ) | (0.64 | ) | (0.64 | ) | ||||||
Basic net income per share | 19.41 | $ | 19.41 | $ | 19.41 | |||||||
Diluted net income (loss) per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 5,484 | $ | 1,190 | $ | 6,673 | ||||||
Reallocation of undistributed earnings as a result of conversion | 1,190 | 0 | 0 | |||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (1 | ) | (21 | ) | 1 | |||||||
Allocation of undistributed earnings - continuing operations | $ | 6,673 | $ | 1,169 | $ | 6,674 | ||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | (175 | ) | $ | (38 | ) | $ | (214 | ) | |||
Reallocation of undistributed earnings as a result of conversion | (38 | ) | 0 | 0 | ||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (1 | ) | 1 | 1 | ||||||||
Allocation of undistributed earnings - discontinued operations | $ | (214 | ) | $ | (37 | ) | $ | (213 | ) | |||
Denominator | ||||||||||||
Number of shares used in basic computation | 273,518 | 59,328 | 332,846 | |||||||||
Weighted-average effect of dilutive securities | ||||||||||||
Add: | ||||||||||||
Conversion of Class B to Class A common shares outstanding | 59,328 | 0 | 0 | |||||||||
Employee stock options, including warrants issued under | 2,748 | 4 | 2,748 | |||||||||
Transferable Stock Option program | ||||||||||||
Restricted stock units and other contingently issuable shares | 3,215 | 0 | 3,215 | |||||||||
Number of shares used in per share computation | 338,809 | 59,332 | 338,809 | |||||||||
Diluted net income (loss) per share: | ||||||||||||
Continuing operations | $ | 19.7 | $ | 19.7 | $ | 19.7 | ||||||
Discontinued operations | (0.63 | ) | (0.63 | ) | (0.63 | ) | ||||||
Diluted net income per share | $ | 19.07 | $ | 19.07 | $ | 19.07 | ||||||
Year Ended December 31, | ||||||||||||
2014 | ||||||||||||
Class A | Class B | Class C | ||||||||||
Basic net income per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 5,829 | $ | 1,132 | $ | 6,967 | ||||||
Allocation of undistributed earnings - discontinued operations | 216 | 42 | 258 | |||||||||
Total | $ | 6,045 | $ | 1,174 | $ | 7,225 | ||||||
Denominator | ||||||||||||
Number of shares used in per share computation | 282,877 | 54,928 | 338,130 | |||||||||
Basic net income per share | ||||||||||||
Continuing operations | $ | 20.61 | $ | 20.61 | $ | 20.61 | ||||||
Discontinued operations | 0.76 | 0.76 | 0.76 | |||||||||
Basic net income per share | $ | 21.37 | $ | 21.37 | $ | 21.37 | ||||||
Diluted net income per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 5,829 | $ | 1,132 | $ | 6,967 | ||||||
Reallocation of undistributed earnings as a result of conversion | 1,132 | 0 | 0 | |||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (20 | ) | (19 | ) | 20 | |||||||
Allocation of undistributed earnings - continuing operations | $ | 6,941 | $ | 1,113 | $ | 6,987 | ||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | 216 | $ | 42 | $ | 258 | ||||||
Reallocation of undistributed earnings as a result of conversion | 42 | 0 | 0 | |||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (1 | ) | (1 | ) | 1 | |||||||
Allocation of undistributed earnings - discontinued operations | $ | 257 | $ | 41 | $ | 259 | ||||||
Denominator | ||||||||||||
Number of shares used in basic computation | 282,877 | 54,928 | 338,130 | |||||||||
Weighted-average effect of dilutive securities | ||||||||||||
Add: | ||||||||||||
Conversion of Class B to Class A common shares outstanding | 54,928 | 0 | 0 | |||||||||
Employee stock options | 2,057 | 0 | 2,038 | |||||||||
Restricted stock units and other contingently issuable shares | 2,515 | 0 | 4,525 | |||||||||
Number of shares used in per share computation | 342,377 | 54,928 | 344,693 | |||||||||
Diluted net income per share: | ||||||||||||
Continuing operations | $ | 20.27 | $ | 20.27 | $ | 20.27 | ||||||
Discontinued operations | 0.75 | 0.75 | 0.75 | |||||||||
Diluted net income per share | $ | 21.02 | $ | 21.02 | $ | 21.02 | ||||||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Stockholders' Equity | Stockholders’ Equity | ||||||||||||
Convertible Preferred Stock | |||||||||||||
Our board of directors has authorized 100,000,000 shares of convertible preferred stock, $0.001 par value, issuable in series. As of December 31, 2013 and 2014, there were no shares issued or outstanding. | |||||||||||||
Class A and Class B Common Stock and Class C Capital Stock | |||||||||||||
Our board of directors has authorized three classes of stock, Class A and Class B common stock, and Class C capital stock. The rights of the holders of each class of stock are identical, except with respect to voting. Each share of Class A common stock is entitled to one vote per share. Each share of Class B common stock is entitled to 10 votes per share. Class C capital stock has no voting rights, except as required by applicable law. Shares of Class B common stock may be converted at any time at the option of the stockholder and automatically convert upon sale or transfer to Class A common stock. | |||||||||||||
Stock Split Effected In Form of Stock Dividend | |||||||||||||
In April 2012, our board of directors approved amendments to our certificate of incorporation that created a new class of non-voting capital stock (Class C capital stock). The amendments authorized 3 billion shares of Class C capital stock and also increased the authorized shares of Class A common stock from 6 billion to 9 billion. The amendments are reflected in our Fourth Amended and Restated Certificate of Incorporation (New Charter), the adoption of which was approved by stockholders at our 2012 Annual Meeting of Stockholders held on June 21, 2012. In January 2014, our board of directors approved a distribution of shares of the Class C capital stock as a dividend to our holders of Class A and Class B common stock (the Stock Split). The Stock Split had a record date of March 27, 2014 and a payment date of April 2, 2014. | |||||||||||||
Share and per share amounts disclosed as of December 31, 2014 and for all other comparative periods have been retroactively adjusted to reflect the effects of the Stock Split. Except as expressly provided in the New Charter, shares of Class C capital stock have the same rights and privileges and rank equally, share ratably and are identical in all other respects to the shares of Class A common stock and Class B common stock as to all matters including dividend and distribution rights. | |||||||||||||
In accordance with a settlement of litigation involving the authorization to distribute the Class C capital stock, we may be obligated to make a payment (the Possible Adjustment Payment) to holders of the Class C capital stock if, on a volume-weighted average basis, the Class C capital stock trades below the Class A common stock during the first 365 days following the first date the Class C shares traded on NASDAQ (the Lookback Period), payable in cash, Class A common stock, Class C capital stock, or a combination thereof, at the discretion of the board of directors. The amount of the Possible Adjustment Payment is dependent on the percentage difference that develops, if any, between the volume-weighted average price (VWAP) of Class A and Class C shares during the Lookback Period, as supplied by NASDAQ Data-on-Demand. Had we been obligated to make a payment based on the VWAP of the Class A and Class C shares from April 3, 2014 through December 31, 2014, the monetary value of the Possible Adjustment Payment would have been approximately $593 million as of December 31, 2014. | |||||||||||||
At the end of the Lookback Period, the Possible Adjustment Payment, if any, will be allocated to the numerator for calculating net income per share of Class C capital stock from net income available to shareholders and any remaining undistributed earnings will be allocated on a pro rata basis to Class A and Class B common stock and Class C capital stock based on the number of shares used in the per share computation for each class of stock. In addition, the dilutive impact of the Possible Adjustment Payment, if any, is included in the weighted-average effect of dilutive securities for Class C capital stock in the year ended December 31, 2014. | |||||||||||||
The par value per share of our shares of Class A common stock and Class B common stock remained unchanged at $0.001 per share after the Stock Split. On the effective date of the Stock Split, a transfer between retained earnings and common stock occurred in an amount equal to the $0.001 par value of the Class C capital stock that was issued. | |||||||||||||
Stock Plans | |||||||||||||
During the year ended December 31, 2014, shares reserved for future grants under the 2004 Stock Plan expired and we began granting awards from the 2012 Stock Plan (“Stock Plan”). Under our Stock Plan, RSUs or stock options may be granted. An RSU award is an agreement to issue shares of our stock at the time the award vests. Incentive and non-qualified stock options, or rights to purchase common stock, are generally granted for a term of 10 years. Options and RSUs granted to participants under the Stock Plan generally vest over four years contingent upon employment or service with us on the vesting date. | |||||||||||||
As of December 31, 2014, there were 17,525,225 shares of stock reserved for future issuance under our Stock Plan. | |||||||||||||
Stock-Based Activities | |||||||||||||
We estimated the fair value of each option award on the date of grant using the BSM option pricing model. Our assumptions about stock price volatility were based exclusively on the implied volatilities of publicly traded options to buy our stock with contractual terms closest to the expected life of options granted to our employees. We estimated the expected term based upon the historical exercise behavior of our employees. The risk-free interest rate for periods within the contractual life of the award were based on the U.S. Treasury yield curve in effect at the time of grant. The weighted-average estimated fair value of options granted during the years ended December 31, 2012 and 2013 was $97.14 and $107.20, respectively. No options were granted during the year ended December 31, 2014. | |||||||||||||
The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted in the periods presented: | |||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Risk-free interest rate | 1 | % | 0.9 | % | N/A | ||||||||
Expected volatility | 29 | % | 29 | % | N/A | ||||||||
Expected life (in years) | 5.2 | 5.8 | N/A | ||||||||||
Dividend yield | 0 | 0 | N/A | ||||||||||
The following table summarizes the activities for our options for the year ended December 31, 2014: | |||||||||||||
Options Outstanding | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | (in millions)(1) | |||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Balance at December 31, 2013 | 10,065,726 | $ | 215.5 | ||||||||||
Granted | 0 | N/A | |||||||||||
Exercised | (2,328,965 | ) | $ | 199.84 | |||||||||
Forfeited/canceled | (496,342 | ) | $ | 293.31 | |||||||||
Balance at December 31, 2014 | 7,240,419 | $ | 215.56 | 4.3 | $ | 2,266 | |||||||
Exercisable as of December 31, 2014 | 6,213,230 | $ | 199.57 | 3.9 | $ | 2,044 | |||||||
Exercisable as of December 31, 2014 and expected to vest thereafter(2) | 7,129,380 | $ | 214.06 | 4.3 | $ | 2,242 | |||||||
(1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock prices of $530.66 and $526.40 of our Class A common stock and Class C capital stock, respectively, on December 31, 2014. | |||||||||||||
(2) Options expected to vest reflect an estimated forfeiture rate. | |||||||||||||
The total grant date fair value of stock options vested during 2012, 2013, and 2014 was $489 million, $223 million, and $94 million. The aggregate intrinsic value of all options and warrants exercised during 2012, 2013, and 2014 was $827 million, $1,793 million, and $589 million. These amounts do not include the aggregate sales price of options sold under our Transferable Stock Options (TSO) program, which was discontinued as of November 29, 2013. | |||||||||||||
As of December 31, 2014, there was $56 million of unrecognized compensation cost related to outstanding employee stock options. This amount is expected to be recognized over a weighted-average period of 1.2 years. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation expense related to these awards will be different from our expectations. | |||||||||||||
The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2014: | |||||||||||||
Unvested Restricted Stock Units | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Unvested at December 31, 2013 | 21,953,960 | $ | 359.2 | ||||||||||
Granted | 15,520,343 | $ | 573.71 | ||||||||||
Vested | (10,742,740 | ) | $ | 361.92 | |||||||||
Forfeited/canceled | (2,112,014 | ) | $ | 420.28 | |||||||||
Unvested at December 31, 2014 | 24,619,549 | $ | 487.8 | ||||||||||
Expected to vest after December 31, 2014 (1) | 21,958,176 | $ | 487.8 | ||||||||||
(1) | RSUs expected to vest reflect an estimated forfeiture rate. | ||||||||||||
As of December 31, 2014, there was $9.7 billion of unrecognized compensation cost related to unvested RSUs. This amount is expected to be recognized over a weighted-average period of 2.9 years. To the extent the actual forfeiture rate is different from what we have estimated, stock-based compensation expense related to these awards will be different from our expectations. |
401k_Plans
401(k) Plans | 12 Months Ended |
Dec. 31, 2014 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
401(k) Plans | 401(k) Plans |
We have two 401(k) Savings Plans (401(k) Plans) that qualify as deferred salary arrangements under Section 401(k) of the Internal Revenue Code. Under these 401(k) Plans, matching contributions are based upon the amount of the employees’ contributions subject to certain limitations. We contributed approximately $164 million, $202 million, and $259 million for the years ended December 31, 2012, 2013, and 2014. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income from continuing operations before income taxes included income from domestic operations of $6,447 million, $7,044 million, and $7,936 million for the years ended December 31, 2012, 2013, and 2014, and income from foreign operations of $8,021 million, $8,855 million, and $9,323 million for the years ended December 31, 2012, 2013, and 2014. | ||||||||||||
The provision for income taxes consists of the following (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Current: | ||||||||||||
Federal | $ | 2,484 | $ | 2,217 | $ | 2,424 | ||||||
State | 169 | 117 | 140 | |||||||||
Foreign | 312 | 711 | 774 | |||||||||
Total | 2,965 | 3,045 | 3,338 | |||||||||
Deferred: | ||||||||||||
Federal | (109 | ) | (421 | ) | 29 | |||||||
State | 5 | 0 | 7 | |||||||||
Foreign | 55 | (72 | ) | (43 | ) | |||||||
Total | (49 | ) | (493 | ) | (7 | ) | ||||||
Provision for income taxes | $ | 2,916 | $ | 2,552 | $ | 3,331 | ||||||
The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Expected provision at federal statutory tax rate (35%) | $ | 5,064 | $ | 5,567 | $ | 6,041 | ||||||
State taxes, net of federal benefit | 114 | 123 | 115 | |||||||||
Change in valuation allowance | 1,921 | (641 | ) | (164 | ) | |||||||
Foreign rate differential | (2,208 | ) | (2,659 | ) | (2,400 | ) | ||||||
Federal research credit | 0 | (433 | ) | (318 | ) | |||||||
Basis difference in investment of Arris | (1,960 | ) | 644 | 0 | ||||||||
Other adjustments | (15 | ) | (49 | ) | 57 | |||||||
Provision for income taxes | $ | 2,916 | $ | 2,552 | $ | 3,331 | ||||||
A one-year retroactive extension of the research credit from January 1, 2014, through December 31, 2014, was signed into law on December 19, 2014 in accordance with the Tax Increase Prevention Act of 2014. | ||||||||||||
A retroactive extension of the 2012 federal research and development credit was signed into law on January 2, 2013 in accordance with The American Taxpayer Act of 2012. The benefit of $189 million related to the 2012 federal research and development credit is included in the year ended December 31, 2013. | ||||||||||||
We have not provided U.S. income taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries as of December 31, 2014 because we intend to permanently reinvest such earnings outside the U.S. If these foreign earnings were to be repatriated in the future, the related U.S. tax liability may be reduced by any foreign income taxes previously paid on these earnings. As of December 31, 2014, the cumulative amount of earnings upon which U.S. income taxes have not been provided is approximately $47.4 billion. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. | ||||||||||||
Deferred Income Taxes | ||||||||||||
Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows (in millions): | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Stock-based compensation expense | $ | 283 | $ | 376 | ||||||||
State taxes | 204 | 133 | ||||||||||
Investment loss | 266 | 133 | ||||||||||
Legal settlement accruals | 45 | 175 | ||||||||||
Accrued employee benefits | 477 | 671 | ||||||||||
Accruals and reserves not currently deductible | 390 | 175 | ||||||||||
Net operating losses | 279 | 207 | ||||||||||
Tax credits | 394 | 262 | ||||||||||
Basis difference in investment of Arris | 1,372 | 1,347 | ||||||||||
Other | 250 | 243 | ||||||||||
Total deferred tax assets | 3,960 | 3,722 | ||||||||||
Valuation allowance | (1,899 | ) | (1,659 | ) | ||||||||
Total deferred tax assets net of valuation allowance | 2,061 | 2,063 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | (537 | ) | (852 | ) | ||||||||
Identified intangibles | (1,479 | ) | (965 | ) | ||||||||
Mark-to-market investments | 6 | (273 | ) | |||||||||
Renewable energy investments | (223 | ) | (430 | ) | ||||||||
Other | (185 | ) | (123 | ) | ||||||||
Total deferred tax liabilities | (2,418 | ) | (2,643 | ) | ||||||||
Net deferred tax liabilities | $ | (357 | ) | $ | (580 | ) | ||||||
As of December 31, 2014, our federal and state net operating loss carryforwards for income tax purposes were approximately $554 million and $400 million. If not utilized, the federal net operating loss carryforwards will begin to expire in 2021 and the state net operating loss carryforwards will begin to expire in 2015. The net operating loss carryforwards are subject to various annual limitations under the tax laws of the different jurisdictions. | ||||||||||||
As of December 31, 2014, our California research and development credit carryforwards for income tax purposes were approximately $734 million that can be carried over indefinitely. We believe it is more likely than not that a portion of the state tax credit will not be realized. Therefore, we have recorded a full valuation allowance on the state tax credit carryforward. We will reassess the valuation allowance quarterly and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. | ||||||||||||
As of December 31, 2014, our foreign tax credit carryforwards for income tax purposes were approximately $82 million, which will start to expire in 2021. We believe it is more likely than not that all of the foreign tax credit will be realized. We will reassess the need for a valuation allowance quarterly and if future evidence supports a need to establish a valuation allowance, then a tax expense will be recorded accordingly. | ||||||||||||
As of December 31, 2014, we fully utilized our federal capital loss carryforwards for income tax purpose. On the other hand, our state capital loss carryforwards for income tax purpose as of December 31, 2014 were $379 million. We also have deferred tax assets for impairment losses that, if recognized, will be capital in nature. We believe that it is more likely than not that our deferred tax assets for capital losses and impairment losses will not be realized. Therefore, we have recorded a valuation allowance on both our federal and state deferred tax assets for these items. We will reassess the valuation allowance quarterly and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. | ||||||||||||
In December 2012, we entered into an agreement with Arris for the sale of the Motorola Home business. A deferred tax asset was established for the book-to-tax basis difference in our investment in the Motorola Home business upon signing the agreement because the basis difference was going to be recognized in the foreseeable future. In April 2013, upon the sale of the Motorola Home business to Arris, our basis difference in the Motorola Home business became a basis difference in Google’s investment in Arris shares received in the sale and was adjusted by the amount of cash received as part of the transaction. Since any future losses to be recognized upon the sale of Arris shares will be capital losses, a valuation allowance was recorded against this deferred tax asset to the extent such deferred tax asset is not covered by capital gain generated during 2014. We will reassess the valuation allowance quarterly and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2012 to December 31, 2014 (in millions): | ||||||||||||
Balance as of January 1, 2012 | $ | 1,564 | ||||||||||
Increases related to prior year tax positions | 60 | |||||||||||
Decreases related to prior year tax positions | (40 | ) | ||||||||||
Decreases related to settlement with tax authorities | (62 | ) | ||||||||||
Increases related to current year tax positions | 411 | |||||||||||
Balance as of December 31, 2012 | 1,933 | |||||||||||
Increases related to prior year tax positions | 158 | |||||||||||
Decreases related to prior year tax positions | (37 | ) | ||||||||||
Decreases related to settlement with tax authorities | (78 | ) | ||||||||||
Increases related to current year tax positions | 595 | |||||||||||
Balance as of December 31, 2013 | 2,571 | |||||||||||
Increases related to prior year tax positions | 66 | |||||||||||
Decreases related to prior year tax positions | (44 | ) | ||||||||||
Decreases related to settlement with tax authorities | (1 | ) | ||||||||||
Increases related to current year tax positions | 820 | |||||||||||
Balance as of December 31, 2014 | $ | 3,412 | ||||||||||
Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $1,749 million, $2,378 million, and $3,026 million as of December 31, 2012, 2013, and 2014. | ||||||||||||
As of December 31, 2013 and 2014, we had accrued $181 million and $215 million in interest and penalties in provision for income taxes. | ||||||||||||
We and our subsidiaries are routinely examined by various taxing authorities. Although we file U.S. federal, U.S. state, and foreign tax returns, our two major tax jurisdictions are the U.S. and Ireland. During the quarter ended December 31, 2007, the IRS completed its examination of our 2003 and 2004 tax years. We have filed an appeal with the IRS for certain issues related to this audit and settlements were reached in 2012 on all but one issue which we plan to litigate in court. As a result we released the related reserves in the quarter ended December 31, 2012. The IRS is currently in examination of our 2007, 2008, and 2009 tax years. We expect the examination to be completed within the next 12 months, but we do not anticipate any significant impact to our unrecognized tax benefit balance as of December 31, 2014, related to our 2007, 2008, and 2009 tax years. | ||||||||||||
Our 2010, 2011, 2012, 2013, and 2014 tax years remain subject to examination by the IRS for U.S. federal tax purposes, and our 2010 through 2014 tax years remain subject to examination by the appropriate governmental agencies for Irish tax purposes. There are other ongoing audits in various other jurisdictions that are not material to our financial statements. | ||||||||||||
We have also received tax assessments in multiple foreign jurisdictions asserting transfer pricing adjustments or permanent establishment. We continue to defend any and all such claims as presented. While we believe it is more likely than not that our tax position will be sustained, it is reasonably possible that we will have future obligations related to these matters. |
Information_about_Segments_and
Information about Segments and Geographic Areas | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Information about Segments and Geographic Areas | Information about Segments and Geographic Areas | |||||||||||
Subsequent to the completion of our sale of the Motorola Mobile business on October 29, 2014, we operate as a single operating segment. Our chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. | ||||||||||||
Revenues by geography are based on the billing addresses of our customers. The following tables set forth revenues and long-lived assets by geographic area (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Revenues: | ||||||||||||
United States | $ | 21,287 | $ | 24,752 | $ | 28,139 | ||||||
United Kingdom | 4,846 | 5,600 | 6,483 | |||||||||
Rest of the world | 19,906 | 25,167 | 31,379 | |||||||||
Total revenues | $ | 46,039 | $ | 55,519 | $ | 66,001 | ||||||
As of December 31, | ||||||||||||
2013 (1) | 2014 | |||||||||||
Long-lived assets: | ||||||||||||
United States | $ | 24,004 | $ | 37,355 | ||||||||
International | 14,030 | 13,093 | ||||||||||
Total long-lived assets | $ | 38,034 | $ | 50,448 | ||||||||
(1) Includes the long-lived assets from the Motorola Mobile segment as of December 31, 2013. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 16. Subsequent Event |
Investment in SpaceX | |
On January 20, 2015, we invested $900 million in SpaceX, a space exploration and space transport company, to support continued innovation in the areas of space transport, reusability, and satellite manufacturing. We are currently evaluating the transaction and its impact on our financial statements. |
Schedule_II_Valuation_and_Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Schedule II: Valuation and Qualifying Accounts | Schedule II: Valuation and Qualifying Accounts | |||||||||||||||
Balance at | Additions | Usage | Balance at | |||||||||||||
Beginning of | End of Year | |||||||||||||||
Year | ||||||||||||||||
(In millions) | ||||||||||||||||
Year ended December 31, 2012 | $ | 133 | $ | 1,263 | $ | (815 | ) | $ | 581 | |||||||
Year ended December 31, 2013 | $ | 581 | $ | 1,128 | $ | (1,078 | ) | $ | 631 | |||||||
Year ended December 31, 2014 | $ | 631 | $ | 1,240 | $ | (1,646 | ) | $ | 225 | |||||||
Note: | Additions to the allowance for doubtful accounts are charged to expense. Additions to the allowance for sales credits are charged against revenues. For the year ended December 31, 2012, 2013, and 2014, additions included the impact from the Motorola acquisition. For the years ended December 31, 2013 and 2014, usages include the impact from the sale of Motorola Home and Mobile businesses, respectively. |
Google_Inc_and_Summary_of_Sign1
Google Inc. and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Nature of Operations | Nature of Operations | |||||||||||
We were incorporated in California in September 1998 and re-incorporated in the State of Delaware in August 2003. We generate revenues primarily by delivering relevant, cost-effective online advertising. | ||||||||||||
On April 17, 2013, we sold the Motorola Home business (Motorola Home) to Arris Group, Inc. (Arris). The financial results of Motorola Home are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income for the years ended December 31, 2012 and 2013. See Note 8 for further discussion of the sale. | ||||||||||||
On April 2, 2014, we completed a two-for-one stock split effected in the form of a stock dividend (the Stock Split). All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the Stock Split. See Notes 11 and 12 for additional information about the Stock Split. | ||||||||||||
On October 29, 2014, we sold the Motorola Mobile business (Motorola Mobile) to Lenovo Group Limited (Lenovo). The financial results of Motorola Mobile are presented as net income (loss) from discontinued operations on the Consolidated Statements of Income for the years ended December 31, 2012, 2013, and 2014. See Note 8 for further discussion of the sale. | ||||||||||||
Basis of Consolidation | Basis of Consolidation | |||||||||||
The consolidated financial statements include the accounts of Google Inc. and our subsidiaries. All intercompany balances and transactions have been eliminated. | ||||||||||||
Use of Estimates | Use of Estimates | |||||||||||
The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, intangible assets and goodwill, useful lives of intangible assets and property and equipment, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. | ||||||||||||
Revenue Recognition | Revenue Recognition | |||||||||||
The following table presents our revenues by revenue source (in millions): | ||||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Advertising revenues: | ||||||||||||
Google websites | $ | 31,221 | $ | 37,422 | $ | 45,085 | ||||||
Google Network Members' websites | 12,465 | 13,125 | 13,971 | |||||||||
Total advertising revenues | 43,686 | 50,547 | 59,056 | |||||||||
Other revenues | 2,353 | 4,972 | 6,945 | |||||||||
Revenues | $ | 46,039 | $ | 55,519 | $ | 66,001 | ||||||
We generate revenues primarily by delivering both performance advertising and brand advertising, and we recognize revenues when the services or products have been provided or delivered, the fees we charge are fixed or determinable, we and our advertisers or other customers understand the specific nature and terms of the agreed upon transactions, and collectability is reasonably assured. | ||||||||||||
Performance advertising creates and delivers relevant ads that users will click, leading to direct engagement with advertisers. Most of our performance advertisers pay us on a cost-per-engagement basis, for example, when a user engages in their ads. Brand advertising enhances users’ awareness of and affinity with advertisers’ products and services, through videos, text, images, and other ads that run across various devices. | ||||||||||||
Google AdWords is our auction-based advertising program that enables performance advertisers to place text-based and display ads on Google websites and our Google Network Members’ websites. Google AdSense refers to the online programs through which we distribute our advertisers’ AdWords ads for display on our Google Network Members’ websites. Most of our customers pay us on a cost-per-click basis, which means that an advertiser pays us only when a user clicks on one of its ads. We also offer advertising on a cost-per-impression basis that enables our brand advertisers to pay us based on the number of times their ads display on Google websites and our Google Network Members’ websites as specified by the advertisers. | ||||||||||||
We recognize as revenues the fees charged to advertisers each time a user clicks on one of the ads that appears next to the search results or content on Google websites or our Google Network Members’ websites. For those advertisers using our cost-per-impression pricing, we recognize as revenues the fees charged to advertisers each time their ads are displayed on Google websites or our Google Network Members’ websites. We report our Google AdSense revenues on a gross basis principally because we are the primary obligor to our advertisers. | ||||||||||||
For hardware product sales, where we sell directly to end customers or through distribution channels, revenue recognition generally occurs when products have been shipped, risk of loss has transferred to the customer, objective evidence exists that customer acceptance provisions have been met, no significant obligations remain and allowances for discounts, price protection, returns and customer incentives can be reasonably and reliably estimated. Recorded revenues are reduced by these allowances. Where these allowances cannot be reasonably and reliably estimated, we recognize revenue at the time the product sells through the distribution channel to the end customer. | ||||||||||||
For the sale of certain third-party products and services, we evaluate whether it is appropriate to recognize revenue based on the gross amount billed to the customers or the net amount earned as revenue share. Generally, when we are primarily obligated in a transaction, are subject to inventory risk or have latitude in establishing prices, or have several but not all of these indicators, revenue is recorded on a gross basis. We generally record the net amounts as revenue earned if we are not primarily obligated and do not have inventory risk or latitude in establishing prices. Such amounts earned are typically determined using a fixed percentage, a fixed fee, or a combination of the two. | ||||||||||||
For arrangements that include multiple deliverables, primarily for products that contain software essential to the hardware products’ functionality and services, we allocate revenue to each unit of accounting based on their relative selling prices. In such circumstances, we use a hierarchy to determine the selling prices to be used for allocating revenue: (i) vendor-specific objective evidence of fair value (VSOE), (ii) third-party evidence of selling price, and (iii) best estimate of the selling price (ESP). VSOE generally exists only when we sell the deliverable separately and is the price actually charged by us for that deliverable. ESPs reflect our best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. | ||||||||||||
We record deferred revenues upon invoicing or when cash payments are received in advance of our performance in the underlying agreement on the accompanying Consolidated Balance Sheets. | ||||||||||||
Cost of Revenues | Cost of Revenues | |||||||||||
Cost of revenues consists of traffic acquisition costs which are the advertising revenues shared with our Google Network Members and the amounts paid to our distribution partners who distribute our browser or otherwise direct search queries to our website. | ||||||||||||
Additionally, other costs of revenues includes the following: | ||||||||||||
• | Content acquisition costs primarily related to payments to certain content providers from whom we license their video and other content for distribution on YouTube and Google Play (We share most of the fees these sales generate with content providers or pay a fixed fee to these content providers); | |||||||||||
• | The expenses associated with the operation of our data centers (including depreciation, labor, energy, and bandwidth costs); | |||||||||||
• | Inventory costs for hardware we sell; | |||||||||||
• | Stock-based compensation paid to our employees; | |||||||||||
• | Credit card and other transaction fees related to processing customer transactions; and | |||||||||||
• | Amortization of certain intangible assets. | |||||||||||
Stock-based Compensation | Stock-based Compensation | |||||||||||
Restricted stock units (RSUs) are measured based on the fair market values of the underlying stock on the dates of grant. Shares are issued on the vesting dates net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number of RSUs outstanding. We record the liability for withholding amounts to be paid by us primarily as a reduction to additional paid-in capital when paid. | ||||||||||||
For stock option awards outstanding in the periods presented, we determined fair value using the Black-Scholes-Merton (BSM) option pricing model on the dates of grant. | ||||||||||||
We recognize stock-based compensation using the straight-line method over the vesting period. | ||||||||||||
We include as part of cash flows from financing activities the benefits of tax deductions in excess of the tax-effected compensation of the related stock-based awards for options exercised and RSUs vested during the period. During the years ended December 31, 2012, 2013, and 2014, the amount of cash received from the exercise of stock options was $736 million, $1,174 million, and $465 million, respectively, and the total direct tax benefit realized, including the excess tax benefit, from stock-based award activities was $747 million, $1,195 million, and $1,356 million, respectively. We have elected to account for the indirect effects of stock-based awards -- primarily the research and development tax credit -- through the Consolidated Statements of Income. | ||||||||||||
Certain Risks and Concentrations | Certain Risks and Concentrations | |||||||||||
Our revenues are primarily derived from online advertising, the market for which is highly competitive and rapidly changing. In addition, our revenues are generated from a multitude of vertical market segments in countries around the world. Significant changes in this industry or changes in customer buying or advertiser spending behavior could adversely affect our operating results. | ||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash equivalents, marketable securities, foreign exchange contracts, and accounts receivable. Cash equivalents and marketable securities consist primarily of time deposits, money market and other funds, including cash collateral received related to our securities lending program, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments and municipalities in the U.S., corporate securities, mortgage-backed securities, and asset-backed securities. Foreign exchange contracts are transacted with various financial institutions with high credit standing. Accounts receivable are typically unsecured and are derived from revenues earned from customers located around the world. In 2012, 2013, and 2014, we generated approximately 46%, 45%, and 43% of our revenues from customers based in the U.S., with the majority of customers outside of the U.S. located in Europe and Japan. We perform ongoing evaluations to determine customer credit and we limit the amount of credit we extend, but generally we do not require collateral from our customers. We maintain reserves for estimated credit losses and these losses have generally been within our expectations. | ||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||
Our financial assets and financial liabilities that include cash equivalents, marketable securities, and foreign currency and interest rate derivative contracts are measured and recorded at fair value on a recurring basis. We measure certain other assets including our non-marketable equity securities at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. Our other current financial assets and our other current financial liabilities have fair values that approximate their carrying value and are therefore not recorded at fair value. | ||||||||||||
Cash, Cash Equivalents, and Marketable Securities | Cash, Cash Equivalents, and Marketable Securities | |||||||||||
We invest our excess cash primarily in time deposits, money market and other funds, including cash collateral received related to our securities lending program, highly liquid debt instruments of the U.S. government and its agencies, debt instruments issued by foreign governments and municipalities in the U.S., corporate securities, mortgage-backed securities, and asset-backed securities. | ||||||||||||
We classify all highly liquid investments with stated maturities of three months or less from date of purchase as cash equivalents and all highly liquid investments with stated maturities of greater than three months as marketable securities. | ||||||||||||
We determine the appropriate classification of our investments in marketable securities at the time of purchase and reevaluate such designation at each balance sheet date. We have classified and accounted for our marketable securities as available-for-sale. We may or may not hold securities with stated maturities greater than 12 months until maturity. After consideration of our risk versus reward objectives, as well as our liquidity requirements, we may sell these securities prior to their stated maturities. As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption marketable securities in the accompanying Consolidated Balance Sheets. We carry these securities at fair value, and report the unrealized gains and losses, net of taxes, as a component of stockholders’ equity, except for unrealized losses determined to be other-than-temporary, which we record within interest and other income, net. We determine any realized gains or losses on the sale of marketable securities on a specific identification method, and we record such gains and losses as a component of interest and other income, net. | ||||||||||||
Non Marketable Equity Investments | Non-Marketable Equity Securities | |||||||||||
We have accounted for non-marketable equity securities either under the equity or cost method. Investments through which we exercise significant influence but do not have control over the investee are accounted for under the equity method. Investments through which we are not able to exercise significant influence over the investee are accounted for under the cost method. | ||||||||||||
Impairment of Marketable and Non-Marketable Securities | Impairment of Marketable and Non-Marketable Securities | |||||||||||
We periodically review our marketable and non-marketable securities for impairment. If we conclude that any of these investments are impaired, we determine whether such impairment is other-than-temporary. Factors we consider to make such determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and our intent to sell. For marketable debt securities, we also consider whether (1) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result of credit losses. If any impairment is considered other-than-temporary, we will write down the asset to its fair value and record the corresponding charge as interest and other income, net. | ||||||||||||
Accounts Receivable | Accounts Receivable | |||||||||||
We record accounts receivable at the invoiced amount and we normally do not charge interest. We maintain an allowance for doubtful accounts to reserve for potentially uncollectible receivables. We review the accounts receivable by amounts due by customers which are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of significant customers based on ongoing credit evaluations. We also maintain a sales allowance to reserve for potential credits issued to customers. We determine the amount of the reserve based on historical credits issued. | ||||||||||||
Property and Equipment | Property and Equipment | |||||||||||
We account for property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets, generally two to five years. We depreciate buildings over periods up to 25 years. We amortize leasehold improvements over the shorter of the remaining lease term or the estimated useful lives of the assets. Construction in progress is related to the construction or development of property and equipment that have not yet been placed in service for our intended use. Depreciation for equipment commences once it is placed in service and depreciation for buildings and leasehold improvements commences once they are ready for our intended use. Land is not depreciated. | ||||||||||||
Software Development Costs | Software Development Costs | |||||||||||
We expense software development costs, including costs to develop software products or the software component of products to be marketed to external users, before technological feasibility of such products is reached. We have determined that technological feasibility is reached shortly before the release of those products and as a result, the development costs incurred after the establishment of technological feasibility and before the release of those products are not material. | ||||||||||||
Software development costs also include costs to develop software programs to be used solely to meet our internal needs and cloud based applications used to deliver our services. We capitalize development costs related to these software applications once the preliminary project stage is complete and it is probable that the project will be completed and the software will be used to perform the function intended. Costs capitalized for developing such software applications were not material for the periods presented. | ||||||||||||
Business Combinations | Business Combinations | |||||||||||
We include the results of operations of the businesses that we acquire as of the respective dates of acquisition. We allocate the fair value of the purchase price of our acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. | ||||||||||||
Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets | Long-Lived Assets Including Goodwill and Other Acquired Intangible Assets | |||||||||||
We review property and equipment, long-term prepayments and intangible assets, excluding goodwill, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. We measure recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows that the assets or the asset group are expected to generate. If the assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. In 2014, we recorded impairments of intangible assets, including an impairment of $378 million in the third quarter of 2014 related to a patent licensing royalty asset. | ||||||||||||
We test our goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. No goodwill impairment has been identified in any of the years presented. | ||||||||||||
Intangible assets with definite lives are amortized over their estimated useful lives. We amortize our acquired intangible assets on a straight-line basis with definite lives over periods ranging from one to twelve years. | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
We recognize income taxes under the liability method. We recognize deferred income taxes for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which differences are expected to reverse. We recognize the effect on deferred taxes of a change in tax rates in income in the period that includes the enactment date. | ||||||||||||
Foreign Currency | Foreign Currency | |||||||||||
Generally, the functional currency of our international subsidiaries is the local currency. We translate the financial statements of these subsidiaries to U.S. dollars using month-end rates of exchange for assets and liabilities, and average rates for the annual period derived from month-end spot rates for revenues, costs, and expenses. We record translation gains and losses in accumulated other comprehensive income as a component of stockholders’ equity. We reflect net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency as a component of foreign currency exchange losses in interest and other income, net. | ||||||||||||
Advertising and Promotional Expenses | Advertising and Promotional Expenses | |||||||||||
We expense advertising and promotional costs in the period in which they are incurred. For the years ended December 31, 2012, 2013 and 2014, advertising and promotional expenses totaled approximately $1,992 million, $2,389 million, and $3,004 million. | ||||||||||||
Prior Period Reclassifications | Prior Period Reclassifications | |||||||||||
Reclassifications of prior period amounts related to discontinued operations as a result of the sale of Motorola Home and Motorola Mobile businesses, and share and per share amounts due to the Stock Split have been made to conform to the current period presentation. |
Google_Inc_and_Summary_of_Sign2
Google Inc. and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Accounting Policies [Abstract] | ||||||||||||
Revenues by Revenue Source | The following table presents our revenues by revenue source (in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Advertising revenues: | ||||||||||||
Google websites | $ | 31,221 | $ | 37,422 | $ | 45,085 | ||||||
Google Network Members' websites | 12,465 | 13,125 | 13,971 | |||||||||
Total advertising revenues | 43,686 | 50,547 | 59,056 | |||||||||
Other revenues | 2,353 | 4,972 | 6,945 | |||||||||
Revenues | $ | 46,039 | $ | 55,519 | $ | 66,001 | ||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Schedule of Cash, Cash Equivalents and Short-term Investments | The following tables summarize our cash, cash equivalents and marketable securities by significant investment categories as of December 31, 2013 and December 31, 2014 (in millions): | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 9,909 | $ | 0 | $ | 0 | $ | 9,909 | $ | 9,909 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 4,428 | 0 | 0 | 4,428 | 4,428 | 0 | |||||||||||||||||||||||
U.S. government notes | 18,276 | 23 | (37 | ) | 18,262 | 2,501 | 15,761 | ||||||||||||||||||||||
Marketable equity securities | 197 | 167 | 0 | 364 | 0 | 364 | |||||||||||||||||||||||
22,901 | 190 | (37 | ) | 23,054 | 6,929 | 16,125 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits(1) | 1,207 | 0 | 0 | 1,207 | 790 | 417 | |||||||||||||||||||||||
Money market and other funds(2) | 1,270 | 0 | 0 | 1,270 | 1,270 | 0 | |||||||||||||||||||||||
U.S. government agencies | 4,575 | 3 | (3 | ) | 4,575 | 0 | 4,575 | ||||||||||||||||||||||
Foreign government bonds | 1,502 | 5 | (26 | ) | 1,481 | 0 | 1,481 | ||||||||||||||||||||||
Municipal securities | 2,904 | 9 | (36 | ) | 2,877 | 0 | 2,877 | ||||||||||||||||||||||
Corporate debt securities | 7,300 | 162 | (67 | ) | 7,395 | 0 | 7,395 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 5,969 | 27 | (187 | ) | 5,809 | 0 | 5,809 | ||||||||||||||||||||||
Asset-backed securities | 1,142 | 0 | (2 | ) | 1,140 | 0 | 1,140 | ||||||||||||||||||||||
25,869 | 206 | (321 | ) | 25,754 | 2,060 | 23,694 | |||||||||||||||||||||||
Total | $ | 58,679 | $ | 396 | $ | (358 | ) | $ | 58,717 | $ | 18,898 | $ | 39,819 | ||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Adjusted | Gross | Gross | Fair | Cash and | Marketable | ||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | Cash | Securities | ||||||||||||||||||||||||
Gains | Losses | Equivalents | |||||||||||||||||||||||||||
Cash | $ | 9,863 | $ | 0 | $ | 0 | $ | 9,863 | $ | 9,863 | $ | 0 | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||
Money market and other funds | 2,532 | 0 | 0 | 2,532 | 2,532 | 0 | |||||||||||||||||||||||
U.S. government notes | 15,320 | 37 | (4 | ) | 15,353 | 1,128 | 14,225 | ||||||||||||||||||||||
Marketable equity securities | 988 | 428 | (64 | ) | 1,352 | 0 | 1,352 | ||||||||||||||||||||||
18,840 | 465 | (68 | ) | 19,237 | 3,660 | 15,577 | |||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Time deposits(1) | 2,409 | 0 | 0 | 2,409 | 2,309 | 100 | |||||||||||||||||||||||
Money market and other funds(2) | 1,762 | 0 | 0 | 1,762 | 1,762 | 0 | |||||||||||||||||||||||
Fixed-income bond funds(3) | 385 | 0 | (38 | ) | 347 | 0 | 347 | ||||||||||||||||||||||
U.S. government agencies | 2,327 | 8 | (1 | ) | 2,334 | 750 | 1,584 | ||||||||||||||||||||||
Foreign government bonds | 1,828 | 22 | (10 | ) | 1,840 | 0 | 1,840 | ||||||||||||||||||||||
Municipal securities | 3,370 | 33 | (6 | ) | 3,397 | 3 | 3,394 | ||||||||||||||||||||||
Corporate debt securities | 11,499 | 114 | (122 | ) | 11,491 | 0 | 11,491 | ||||||||||||||||||||||
Agency residential mortgage-backed securities | 8,196 | 109 | (42 | ) | 8,263 | 0 | 8,263 | ||||||||||||||||||||||
Asset-backed securities | 3,456 | 1 | (5 | ) | 3,452 | 0 | 3,452 | ||||||||||||||||||||||
35,232 | 287 | (224 | ) | 35,295 | 4,824 | 30,471 | |||||||||||||||||||||||
Total | $ | 63,935 | $ | 752 | $ | (292 | ) | $ | 64,395 | $ | 18,347 | $ | 46,048 | ||||||||||||||||
(1) | The majority of our time deposits are foreign deposits. | ||||||||||||||||||||||||||||
(2) | The balances as of December 31, 2013 and December 31, 2014 were related to cash collateral received in connection with our securities lending program, which was invested in reverse repurchase agreements maturing within three months. See below for further discussion of this program. | ||||||||||||||||||||||||||||
(3) | Fixed-income bond funds consist of mutual funds that primarily invest in corporate and government bonds. | ||||||||||||||||||||||||||||
Investments Classified by Contractual Maturity Date | The following table summarizes the estimated fair value of our investments in marketable debt securities, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities (in millions): | ||||||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Due in 1 year | $ | 4,547 | |||||||||||||||||||||||||||
Due in 1 year through 5 years | 24,123 | ||||||||||||||||||||||||||||
Due in 5 years through 10 years | 7,083 | ||||||||||||||||||||||||||||
Due after 10 years | 8,596 | ||||||||||||||||||||||||||||
Total | $ | 44,349 | |||||||||||||||||||||||||||
Schedule of Unrealized Loss on Investments | The following tables present gross unrealized losses and fair values for those investments that were in an unrealized loss position as of December 31, 2013 and December 31, 2014, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (in millions): | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||
U.S. government notes | $ | 4,404 | $ | (37 | ) | $ | 0 | $ | 0 | $ | 4,404 | $ | (37 | ) | |||||||||||||||
U.S. government agencies | 496 | (3 | ) | 0 | 0 | 496 | (3 | ) | |||||||||||||||||||||
Foreign government bonds | 899 | (23 | ) | 83 | (3 | ) | 982 | (26 | ) | ||||||||||||||||||||
Municipal securities | 1,210 | (32 | ) | 99 | (4 | ) | 1,309 | (36 | ) | ||||||||||||||||||||
Corporate debt securities | 2,583 | (62 | ) | 69 | (5 | ) | 2,652 | (67 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 4,065 | (167 | ) | 468 | (20 | ) | 4,533 | (187 | ) | ||||||||||||||||||||
Asset-backed securities | 643 | (2 | ) | 0 | 0 | 643 | (2 | ) | |||||||||||||||||||||
Total | $ | 14,300 | $ | (326 | ) | $ | 719 | $ | (32 | ) | $ | 15,019 | $ | (358 | ) | ||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||
U.S. government notes | $ | 4,490 | $ | (4 | ) | $ | 0 | $ | 0 | $ | 4,490 | $ | (4 | ) | |||||||||||||||
U.S. government agencies | 830 | (1 | ) | 0 | 0 | 830 | (1 | ) | |||||||||||||||||||||
Foreign government bonds | 255 | (7 | ) | 43 | (3 | ) | 298 | (10 | ) | ||||||||||||||||||||
Municipal securities | 877 | (3 | ) | 174 | (3 | ) | 1,051 | (6 | ) | ||||||||||||||||||||
Corporate debt securities | 5,851 | (112 | ) | 225 | (10 | ) | 6,076 | (122 | ) | ||||||||||||||||||||
Agency residential mortgage-backed securities | 609 | (1 | ) | 2,168 | (41 | ) | 2,777 | (42 | ) | ||||||||||||||||||||
Asset-backed securities | 2,388 | (4 | ) | 174 | (1 | ) | 2,562 | (5 | ) | ||||||||||||||||||||
Fixed-income bond funds | 347 | (38 | ) | 0 | 0 | 347 | (38 | ) | |||||||||||||||||||||
Marketable equity securities | 690 | (64 | ) | 0 | 0 | 690 | (64 | ) | |||||||||||||||||||||
Total | $ | 16,337 | $ | (234 | ) | $ | 2,784 | $ | (58 | ) | $ | 19,121 | $ | (292 | ) | ||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of our outstanding derivative instruments were as follows (in millions): | ||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of | Fair Value of | Total Fair | ||||||||||||||||||||||||||
Derivatives | Derivatives Not | Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedging Instruments | Hedging Instruments | ||||||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | $ | 133 | $ | 12 | $ | 145 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 87 | 0 | 87 | |||||||||||||||||||||||||
Total | $ | 220 | $ | 12 | $ | 232 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 0 | $ | 4 | $ | 4 | ||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value of | Fair Value of | Total Fair | ||||||||||||||||||||||||||
Derivatives | Derivatives Not | Value | |||||||||||||||||||||||||||
Designated as | Designated as | ||||||||||||||||||||||||||||
Hedging Instruments | Hedging Instruments | ||||||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | $ | 851 | $ | 0 | $ | 851 | ||||||||||||||||||||||
Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | 1 | 0 | 1 | |||||||||||||||||||||||||
Total | $ | 852 | $ | 0 | $ | 852 | |||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||
Foreign exchange contracts | Accrued expenses and other current liabilities | $ | 0 | $ | 3 | $ | 3 | ||||||||||||||||||||||
Interest rate contracts | Accrued expenses and other liabilities, current and non-current | 1 | 0 | 1 | |||||||||||||||||||||||||
Total | $ | 1 | $ | 3 | $ | 4 | |||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The effect of derivative instruments in cash flow hedging relationships on income and other comprehensive income (OCI) is summarized below (in millions): | ||||||||||||||||||||||||||||
Gains (Losses) Recognized in OCI | |||||||||||||||||||||||||||||
on Derivatives Before Tax Effect (Effective Portion) | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | 2012 | 2013 | 2014 | ||||||||||||||||||||||||||
Foreign exchange contracts | $ | 73 | $ | 92 | $ | 929 | |||||||||||||||||||||||
Interest rate contracts | 1 | 86 | (31 | ) | |||||||||||||||||||||||||
Total | $ | 74 | $ | 178 | $ | 898 | |||||||||||||||||||||||
Gains Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Location | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Foreign exchange contracts | Revenues | $ | 217 | $ | 95 | $ | 171 | ||||||||||||||||||||||
Interest rate contracts | Interest and other income, net | 0 | 0 | $ | 4 | ||||||||||||||||||||||||
Total | $ | 217 | $ | 95 | $ | 175 | |||||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives (Amount | |||||||||||||||||||||||||||||
Excluded from Effectiveness Testing and Ineffective Portion) (1) | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationship | Location | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (447 | ) | $ | (280 | ) | $ | (279 | ) | |||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and other income, net | 0 | 0 | $ | 4 | ||||||||||||||||||||||||
Total | $ | (447 | ) | $ | (280 | ) | $ | (275 | ) | ||||||||||||||||||||
-1 | Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented. | ||||||||||||||||||||||||||||
The effect of derivative instruments in fair value hedging relationships on income is summarized below (in millions): | |||||||||||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives(2) | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives in Fair Value Hedging Relationship | Location | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (31 | ) | $ | 16 | $ | 115 | |||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Hedged item | Interest and | 23 | (25 | ) | (123 | ) | |||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (8 | ) | $ | (9 | ) | $ | (8 | ) | ||||||||||||||||||||
-2 | Losses related to the amount excluded from effectiveness testing of the hedges were $8 million, $9 million, and $8 million for the years ended December 31, 2012, 2013, and 2014. | ||||||||||||||||||||||||||||
The effect of derivative instruments not designated as hedging instruments on income is summarized below (in millions): | |||||||||||||||||||||||||||||
Gains (Losses) Recognized in Income on Derivatives | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
Derivatives Not Designated As Hedging Instruments | Location | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
Foreign exchange contracts | Interest and | $ | (67 | ) | $ | 118 | $ | 237 | |||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Interest rate contracts | Interest and | (6 | ) | 4 | 2 | ||||||||||||||||||||||||
other income, net | |||||||||||||||||||||||||||||
Total | $ | (73 | ) | $ | 122 | $ | 239 | ||||||||||||||||||||||
Offsetting Assets | As of December 31, 2013 and December 31, 2014, information related to these offsetting arrangements was as follows (in millions): | ||||||||||||||||||||||||||||
Offsetting of Assets | |||||||||||||||||||||||||||||
Balance as of December 31, 2013 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Non-Cash Collateral Received | Net Assets Exposed | ||||||||||||||||||||||
Derivatives | $ | 232 | $ | 0 | $ | 232 | $ | (2 | ) | (1) | $ | (35 | ) | $ | (52 | ) | $ | 143 | |||||||||||
Reverse repurchase agreements | 1,370 | 0 | 1,370 | (2) | 0 | 0 | (1,370 | ) | 0 | ||||||||||||||||||||
Total | $ | 1,602 | $ | 0 | $ | 1,602 | $ | (2 | ) | $ | (35 | ) | $ | (1,422 | ) | $ | 143 | ||||||||||||
Balance as of December 31, 2014 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Non-Cash Collateral Received | Net Assets Exposed | ||||||||||||||||||||||
Derivatives | $ | 852 | $ | 0 | $ | 852 | $ | (1 | ) | (1) | $ | (251 | ) | $ | (412 | ) | $ | 188 | |||||||||||
Reverse repurchase agreements | 2,637 | 0 | 2,637 | (2) | 0 | 0 | (2,637 | ) | 0 | ||||||||||||||||||||
Total | $ | 3,489 | $ | 0 | $ | 3,489 | $ | (1 | ) | $ | (251 | ) | $ | (3,049 | ) | $ | 188 | ||||||||||||
(1) The balances at December 31, 2013 and December 31, 2014 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. | |||||||||||||||||||||||||||||
(2) The balances at December 31, 2013 and December 31, 2014 included $1,270 million and $1,762 million recorded in cash and cash equivalents, respectively, and $100 million and $875 million recorded in receivable under reverse repurchase agreements, respectively. | |||||||||||||||||||||||||||||
Offsetting Liabilities | |||||||||||||||||||||||||||||
Offsetting of Liabilities | |||||||||||||||||||||||||||||
Balance as of December 31, 2013 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Non-Cash Collateral Pledged | Net Liabilities | ||||||||||||||||||||||
Derivatives | $ | 4 | $ | 0 | $ | 4 | $ | (2 | ) | (3) | $ | 0 | $ | 0 | $ | 2 | |||||||||||||
Securities lending agreements | 1,374 | 0 | 1,374 | 0 | 0 | (1,357 | ) | 17 | |||||||||||||||||||||
Total | $ | 1,378 | $ | 0 | $ | 1,378 | $ | (2 | ) | $ | 0 | $ | (1,357 | ) | $ | 19 | |||||||||||||
Balance as of December 31, 2014 | |||||||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets, but Have Legal Rights to Offset | |||||||||||||||||||||||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Non-Cash Collateral Pledged | Net Liabilities | ||||||||||||||||||||||
Derivatives | $ | 4 | $ | 0 | $ | 4 | $ | (1 | ) | (3) | $ | 0 | $ | 0 | $ | 3 | |||||||||||||
Securities lending agreements | 2,778 | 0 | 2,778 | 0 | 0 | (2,740 | ) | 38 | |||||||||||||||||||||
Total | $ | 2,782 | $ | 0 | $ | 2,782 | $ | (1 | ) | $ | 0 | $ | (2,740 | ) | $ | 41 | |||||||||||||
(3) The balances at December 31, 2013 and December 31, 2014 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of Long-term Debt Instruments | The details of these financing arrangements are described in the table below (in millions): | |||||||
Outstanding Balance As of December 31, 2013 | Outstanding Balance As of December 31, 2014 | |||||||
Short-term portion of long-term debt: | ||||||||
1.25% Notes due on May 19, 2014 | $ | 1,000 | $ | 0 | ||||
Capital lease obligation | 9 | 10 | ||||||
Total | $ | 1,009 | $ | 10 | ||||
Long-term debt: | ||||||||
2.125% Notes due on May 19, 2016 | 1,000 | 1,000 | ||||||
3.625% Notes due on May 19, 2021 | 1,000 | 1,000 | ||||||
3.375% Notes due on February 25, 2024 | 0 | 1,000 | ||||||
Unamortized discount for the Notes above | (10 | ) | (8 | ) | ||||
Subtotal | 1,990 | 2,992 | ||||||
Capital lease obligation | 246 | 236 | ||||||
Total | $ | 2,236 | $ | 3,228 | ||||
Schedule of Maturities of Long-term Debt | As of December 31, 2014, aggregate future principal payments for long-term debt (including short-term portion of long-term debt) and capital lease obligation were as follows (in millions): | |||||||
Years ending | ||||||||
2015 | $ | 10 | ||||||
2016 | 1,236 | |||||||
2017 | 0 | |||||||
2018 | 0 | |||||||
Thereafter | 2,000 | |||||||
Total | $ | 3,246 | ||||||
Balance_Sheet_Components_Table
Balance Sheet Components (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Balance Sheet Components Disclosure [Abstract] | ||||||||||||||||
Property and Equipment | Property and equipment, net consisted of the following (in millions): | |||||||||||||||
As of December 31, 2013 | As of December 31, 2014 | |||||||||||||||
Information technology assets | $ | 9,094 | $ | 10,918 | ||||||||||||
Land and buildings | 7,488 | 13,326 | ||||||||||||||
Construction in progress | 5,602 | 6,555 | ||||||||||||||
Leasehold improvements | 1,576 | 1,868 | ||||||||||||||
Furniture and fixtures | 77 | 79 | ||||||||||||||
Total | 23,837 | 32,746 | ||||||||||||||
Less: accumulated depreciation and amortization | 7,313 | 8,863 | ||||||||||||||
Property and equipment, net | $ | 16,524 | $ | 23,883 | ||||||||||||
Schedule of Notes Receivable | The Note Receivable is included in prepaid revenue share, expenses and other assets, non-current on our Consolidated Balance Sheets. Based on the general market conditions and the credit quality of Lenovo, we discounted the Note Receivable at an effective interest rate of 4.5% as shown in the table below (in millions): | |||||||||||||||
As of December 31, 2014 | ||||||||||||||||
Principal of the Note Receivable | $ | 1,500 | ||||||||||||||
Less: unamortized discount for the Note Receivable | (175 | ) | ||||||||||||||
Total | $ | 1,325 | ||||||||||||||
Components of Accumulated Other Comprehensive Income | The components of AOCI, net of tax, were as follows (in millions): | |||||||||||||||
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Investments | Unrealized Gains on Cash Flow Hedges | Total | |||||||||||||
Balance as of December 31, 2012 | $ | (73 | ) | $ | 604 | $ | 7 | $ | 538 | |||||||
Other comprehensive income (loss) before reclassifications | 89 | (392 | ) | 112 | (191 | ) | ||||||||||
Amounts reclassified from AOCI | 0 | (162 | ) | (60 | ) | (222 | ) | |||||||||
Other comprehensive income (loss) | 89 | (554 | ) | 52 | (413 | ) | ||||||||||
Balance as of December 31, 2013 | $ | 16 | $ | 50 | $ | 59 | $ | 125 | ||||||||
Foreign Currency Translation Adjustments | Unrealized Gains (Losses) on Available-for-Sale Investments | Unrealized Gains on Cash Flow Hedges | Total | |||||||||||||
Balance as of December 31, 2013 | $ | 16 | $ | 50 | $ | 59 | $ | 125 | ||||||||
Other comprehensive income (loss) before reclassifications | (996 | ) | 505 | 651 | 160 | |||||||||||
Amounts reclassified from AOCI | 0 | (134 | ) | (124 | ) | (258 | ) | |||||||||
Other comprehensive income (loss) | (996 | ) | 371 | 527 | (98 | ) | ||||||||||
Balance as of December 31, 2014 | $ | (980 | ) | $ | 421 | $ | 586 | $ | 27 | |||||||
Schedule of Effects on Net Income of Amounts Reclassified from Accumulated OCI | The effects on net income of amounts reclassified from AOCI were as follows (in millions): | |||||||||||||||
Gains (Losses) Reclassified from AOCI to the Consolidated Statement of Income | ||||||||||||||||
Year ended December 31 | ||||||||||||||||
AOCI Components | Location | 2013 | 2014 | |||||||||||||
Unrealized gains on available-for-sale investments | ||||||||||||||||
Interest and other income, net | $ | 158 | $ | 153 | ||||||||||||
Net income (loss) from discontinued operations | 43 | 0 | ||||||||||||||
Provision for income taxes | (39 | ) | (19 | ) | ||||||||||||
Net of tax | $ | 162 | $ | 134 | ||||||||||||
Unrealized gains on cash flow hedges | ||||||||||||||||
Foreign exchange contracts | Revenues | $ | 95 | $ | 171 | |||||||||||
Interest rate contracts | Interest and other income, net | 0 | 4 | |||||||||||||
Provision for income taxes | (35 | ) | (51 | ) | ||||||||||||
Net of tax | $ | 60 | $ | 124 | ||||||||||||
Total amount reclassified, net of tax | $ | 222 | $ | 258 | ||||||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill for the year ended December 31, 2014 were as follows (in millions): | |||||||||||
Balance as of December 31, 2013 | $ | 11,492 | ||||||||||
Goodwill acquired | 4,208 | |||||||||||
Goodwill disposed | (43 | ) | ||||||||||
Goodwill adjustment | (58 | ) | ||||||||||
Balance as of December 31, 2014 | $ | 15,599 | ||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | Information regarding our purchased intangible assets is as follows (in millions): | |||||||||||
As of December 31, 2013 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Amount | |||||||||||
Patents and developed technology | $ | 7,282 | $ | 2,102 | $ | 5,180 | ||||||
Customer relationships | 1,770 | 1,067 | 703 | |||||||||
Trade names and other | 534 | 351 | 183 | |||||||||
Total | $ | 9,586 | $ | 3,520 | $ | 6,066 | ||||||
As of December 31, 2014 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Carrying | Amortization | Carrying | ||||||||||
Amount | Value | |||||||||||
Patents and developed technology | $ | 6,547 | $ | 2,513 | $ | 4,034 | ||||||
Customer relationships | 1,410 | 1,168 | 242 | |||||||||
Trade names and other | 696 | 365 | 331 | |||||||||
Total | $ | 8,653 | $ | 4,046 | $ | 4,607 | ||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of December 31, 2014, expected amortization expense for our purchased intangible assets for each of the next five years and thereafter was as follows (in millions): | |||||||||||
2015 | $ | 865 | ||||||||||
2016 | 784 | |||||||||||
2017 | 704 | |||||||||||
2018 | 633 | |||||||||||
2019 | 524 | |||||||||||
Thereafter | 1,097 | |||||||||||
$ | 4,607 | |||||||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Motorola Mobile | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues, Earnings, Assets and Liabilities Attributable to Motorola Home/Mobile Business | The following table presents financial results of the Motorola Mobile business included in net income (loss) from discontinued operations for the years ended December 31, 2012, 2013 and 2014 (in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 (1) | ||||||||||
Revenues | $ | 4,136 | $ | 4,306 | $ | 5,486 | ||||||
Loss from discontinued operations before income taxes | (1,083 | ) | (1,403 | ) | (177 | ) | ||||||
Benefits from/(Provision for) income taxes | 318 | 270 | (47 | ) | ||||||||
Gain on disposal | 0 | 0 | 740 | |||||||||
Net (loss) income from discontinued operations | $ | (765 | ) | $ | (1,133 | ) | $ | 516 | ||||
(1) The operating results of Motorola Mobile were included in our Consolidated Statements of Income from January 1, 2014 through October 29, 2014, the date of divestiture. | ||||||||||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions): | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | $ | 160 | ||||||||||
Accounts receivable | 1,103 | |||||||||||
Inventories | 217 | |||||||||||
Prepaid expenses and other current assets | 357 | |||||||||||
Prepaid expenses and other assets, non-current | 290 | |||||||||||
Property and equipment, net | 542 | |||||||||||
Intangible assets, net | 985 | |||||||||||
Goodwill | 43 | |||||||||||
Total assets | $ | 3,697 | ||||||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 1,238 | ||||||||||
Accrued compensation and benefits | 163 | |||||||||||
Accrued expenses and other current liabilities | 10 | |||||||||||
Deferred revenue, current | 165 | |||||||||||
Other long-term liabilities | 250 | |||||||||||
Total liabilities | $ | 1,826 | ||||||||||
Motorola Home | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Revenues, Earnings, Assets and Liabilities Attributable to Motorola Home/Mobile Business | The following table presents financial results of the Motorola Home business included in net income (loss) from discontinued operations for the years ended December 31, 2012 and 2013 (in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 (1) | |||||||||||
Revenues | $ | 2,028 | $ | 804 | ||||||||
Loss from discontinued operations before income taxes | (22 | ) | (67 | ) | ||||||||
(Provision for)/Benefits from income taxes | (29 | ) | 16 | |||||||||
Gain on disposal | 0 | 757 | ||||||||||
Net (loss) income from discontinued operations | $ | (51 | ) | $ | 706 | |||||||
(1) The operating results of Motorola Home were included in our Consolidated Statements of Income from January 1, 2013 through April 17, 2013, the date of divestiture. | ||||||||||||
The following table presents the aggregate carrying amounts of the major classes of assets and liabilities divested (in millions): | ||||||||||||
Assets: | ||||||||||||
Accounts receivable | $ | 424 | ||||||||||
Inventories | 228 | |||||||||||
Deferred income taxes, net | 144 | |||||||||||
Prepaid and other current assets | 152 | |||||||||||
Property and equipment, net | 282 | |||||||||||
Intangible assets, net | 701 | |||||||||||
Other assets, non-current | 182 | |||||||||||
Total assets | $ | 2,113 | ||||||||||
Liabilities: | ||||||||||||
Accounts payable | $ | 169 | ||||||||||
Accrued expenses and other liabilities | 289 | |||||||||||
Total liabilities | $ | 458 | ||||||||||
Interest_and_Other_Income_Net_
Interest and Other Income, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Schedule of Other Nonoperating Income (Expense) | The components of interest and other income, net, were as follows (in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Interest income | $ | 700 | $ | 766 | $ | 746 | ||||||
Interest expense | (85 | ) | (81 | ) | (101 | ) | ||||||
Realized gains on available-for-sale investments, net | 282 | 158 | 153 | |||||||||
Foreign currency exchange losses (1) | (514 | ) | (379 | ) | (402 | ) | ||||||
Realized gain on equity interest | 0 | 0 | 126 | |||||||||
Realized gain on non-marketable equity investments | 0 | 0 | 159 | |||||||||
Gain (loss) on divestiture of businesses (2) | 188 | (57 | ) | 0 | ||||||||
Other income, net | 64 | 89 | 82 | |||||||||
Interest and other income, net | $ | 635 | $ | 496 | $ | 763 | ||||||
(1) Includes net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency, net of those recognized on foreign exchange contracts. We recorded net foreign currency transaction losses of $61 million, $121 million, and $107 million in 2012, 2013, and 2014, respectively. | ||||||||||||
(2) Gain on divestiture of Motorola Home business was included in net income (loss) from discontinued operations for the year ended December 31, 2013. Gain on divestiture of Motorola Mobile business was included in net income (loss) from discontinued operations for the year ended December 31, 2014. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Future Minimum Lease Payments Under Noncancelable Operating Leases | As of December 31, 2014, future minimum payments under non-cancelable operating leases, net of sublease income amounts, were as follows over each of the next five years and thereafter (in millions): | |||||||||||
Operating | Sub-lease | Net | ||||||||||
Leases | Income | Operating | ||||||||||
Leases | ||||||||||||
2015 | 628 | 30 | 598 | |||||||||
2016 | 643 | 21 | 622 | |||||||||
2017 | 644 | 10 | 634 | |||||||||
2018 | 597 | 1 | 596 | |||||||||
2019 | 576 | 0 | 576 | |||||||||
Thereafter | 3,157 | 0 | 3,157 | |||||||||
Total minimum payments | $ | 6,245 | $ | 62 | $ | 6,183 | ||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table sets forth the computation of basic and diluted net income per share of Class A and Class B common stock and Class C capital stock (in millions, except share amounts which are reflected in thousands and per share amounts): | |||||||||||
Year Ended December 31, | ||||||||||||
2012 | ||||||||||||
Class A | Class B | Class C | ||||||||||
Basic net income (loss) per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 4,627 | $ | 1,150 | $ | 5,776 | ||||||
Allocation of undistributed earnings - discontinued operations | (327 | ) | (81 | ) | (408 | ) | ||||||
Total | $ | 4,300 | $ | 1,069 | $ | 5,368 | ||||||
Denominator | ||||||||||||
Number of shares used in per share computation | 262,078 | 65,135 | 327,213 | |||||||||
Basic net income (loss) per share | ||||||||||||
Continuing operations | $ | 17.66 | $ | 17.66 | 17.66 | |||||||
Discontinued operations | (1.25 | ) | (1.25 | ) | (1.25 | ) | ||||||
Basic net income per share | $ | 16.41 | $ | 16.41 | $ | 16.41 | ||||||
Diluted net income (loss) per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 4,627 | $ | 1,150 | $ | 5,776 | ||||||
Reallocation of undistributed earnings as a result of conversion | 1,150 | 0 | 0 | |||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (1 | ) | (17 | ) | 1 | |||||||
Allocation of undistributed earnings - continuing operations | $ | 5,776 | $ | 1,133 | $ | 5,777 | ||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | (327 | ) | $ | (81 | ) | $ | (408 | ) | |||
Reallocation of undistributed earnings as a result of conversion | (81 | ) | 0 | 0 | ||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | 0 | 1 | 0 | |||||||||
Allocation of undistributed earnings - discontinued operations | $ | (408 | ) | $ | (80 | ) | $ | (408 | ) | |||
Denominator | ||||||||||||
Number of shares used in basic computation | 262,078 | 65,135 | 327,213 | |||||||||
Weighted-average effect of dilutive securities | ||||||||||||
Add: | ||||||||||||
Conversion of Class B to Class A common shares outstanding | 65,135 | 0 | 0 | |||||||||
Employee stock options, including warrants issued under | 2,944 | 34 | 2,944 | |||||||||
Transferable Stock Option program | ||||||||||||
Restricted stock units and other contingently issuable shares | 2,148 | 0 | 2,148 | |||||||||
Number of shares used in per share computation | 332,305 | 65,169 | 332,305 | |||||||||
Diluted net income (loss) per share: | ||||||||||||
Continuing operations | $ | 17.39 | $ | 17.39 | $ | 17.39 | ||||||
Discontinued operations | (1.23 | ) | (1.23 | ) | (1.23 | ) | ||||||
Diluted net income per share | $ | 16.16 | $ | 16.16 | $ | 16.16 | ||||||
Year Ended December 31, | ||||||||||||
2013 | ||||||||||||
Class A | Class B | Class C | ||||||||||
Basic net income (loss) per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 5,484 | $ | 1,190 | $ | 6,673 | ||||||
Allocation of undistributed earnings - discontinued operations | (175 | ) | (38 | ) | (214 | ) | ||||||
Total | $ | 5,309 | $ | 1,152 | $ | 6,459 | ||||||
Denominator | ||||||||||||
Number of shares used in per share computation | 273,518 | 59,328 | 332,846 | |||||||||
Basic net income (loss) per share | ||||||||||||
Continuing operations | $ | 20.05 | $ | 20.05 | $ | 20.05 | ||||||
Discontinued operations | (0.64 | ) | (0.64 | ) | (0.64 | ) | ||||||
Basic net income per share | 19.41 | $ | 19.41 | $ | 19.41 | |||||||
Diluted net income (loss) per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 5,484 | $ | 1,190 | $ | 6,673 | ||||||
Reallocation of undistributed earnings as a result of conversion | 1,190 | 0 | 0 | |||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (1 | ) | (21 | ) | 1 | |||||||
Allocation of undistributed earnings - continuing operations | $ | 6,673 | $ | 1,169 | $ | 6,674 | ||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | (175 | ) | $ | (38 | ) | $ | (214 | ) | |||
Reallocation of undistributed earnings as a result of conversion | (38 | ) | 0 | 0 | ||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (1 | ) | 1 | 1 | ||||||||
Allocation of undistributed earnings - discontinued operations | $ | (214 | ) | $ | (37 | ) | $ | (213 | ) | |||
Denominator | ||||||||||||
Number of shares used in basic computation | 273,518 | 59,328 | 332,846 | |||||||||
Weighted-average effect of dilutive securities | ||||||||||||
Add: | ||||||||||||
Conversion of Class B to Class A common shares outstanding | 59,328 | 0 | 0 | |||||||||
Employee stock options, including warrants issued under | 2,748 | 4 | 2,748 | |||||||||
Transferable Stock Option program | ||||||||||||
Restricted stock units and other contingently issuable shares | 3,215 | 0 | 3,215 | |||||||||
Number of shares used in per share computation | 338,809 | 59,332 | 338,809 | |||||||||
Diluted net income (loss) per share: | ||||||||||||
Continuing operations | $ | 19.7 | $ | 19.7 | $ | 19.7 | ||||||
Discontinued operations | (0.63 | ) | (0.63 | ) | (0.63 | ) | ||||||
Diluted net income per share | $ | 19.07 | $ | 19.07 | $ | 19.07 | ||||||
Year Ended December 31, | ||||||||||||
2014 | ||||||||||||
Class A | Class B | Class C | ||||||||||
Basic net income per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings - continuing operations | $ | 5,829 | $ | 1,132 | $ | 6,967 | ||||||
Allocation of undistributed earnings - discontinued operations | 216 | 42 | 258 | |||||||||
Total | $ | 6,045 | $ | 1,174 | $ | 7,225 | ||||||
Denominator | ||||||||||||
Number of shares used in per share computation | 282,877 | 54,928 | 338,130 | |||||||||
Basic net income per share | ||||||||||||
Continuing operations | $ | 20.61 | $ | 20.61 | $ | 20.61 | ||||||
Discontinued operations | 0.76 | 0.76 | 0.76 | |||||||||
Basic net income per share | $ | 21.37 | $ | 21.37 | $ | 21.37 | ||||||
Diluted net income per share: | ||||||||||||
Numerator | ||||||||||||
Allocation of undistributed earnings for basic computation - continuing operations | $ | 5,829 | $ | 1,132 | $ | 6,967 | ||||||
Reallocation of undistributed earnings as a result of conversion | 1,132 | 0 | 0 | |||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (20 | ) | (19 | ) | 20 | |||||||
Allocation of undistributed earnings - continuing operations | $ | 6,941 | $ | 1,113 | $ | 6,987 | ||||||
Allocation of undistributed earnings for basic computation - discontinued operations | $ | 216 | $ | 42 | $ | 258 | ||||||
Reallocation of undistributed earnings as a result of conversion | 42 | 0 | 0 | |||||||||
of Class B to Class A shares | ||||||||||||
Reallocation of undistributed earnings | (1 | ) | (1 | ) | 1 | |||||||
Allocation of undistributed earnings - discontinued operations | $ | 257 | $ | 41 | $ | 259 | ||||||
Denominator | ||||||||||||
Number of shares used in basic computation | 282,877 | 54,928 | 338,130 | |||||||||
Weighted-average effect of dilutive securities | ||||||||||||
Add: | ||||||||||||
Conversion of Class B to Class A common shares outstanding | 54,928 | 0 | 0 | |||||||||
Employee stock options | 2,057 | 0 | 2,038 | |||||||||
Restricted stock units and other contingently issuable shares | 2,515 | 0 | 4,525 | |||||||||
Number of shares used in per share computation | 342,377 | 54,928 | 344,693 | |||||||||
Diluted net income per share: | ||||||||||||
Continuing operations | $ | 20.27 | $ | 20.27 | $ | 20.27 | ||||||
Discontinued operations | 0.75 | 0.75 | 0.75 | |||||||||
Diluted net income per share | $ | 21.02 | $ | 21.02 | $ | 21.02 | ||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted in the periods presented: | ||||||||||||
Year Ended December 31, | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
Risk-free interest rate | 1 | % | 0.9 | % | N/A | ||||||||
Expected volatility | 29 | % | 29 | % | N/A | ||||||||
Expected life (in years) | 5.2 | 5.8 | N/A | ||||||||||
Dividend yield | 0 | 0 | N/A | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the activities for our options for the year ended December 31, 2014: | ||||||||||||
Options Outstanding | |||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||
Shares | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value | |||||||||||
Price | Contractual | (in millions)(1) | |||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Balance at December 31, 2013 | 10,065,726 | $ | 215.5 | ||||||||||
Granted | 0 | N/A | |||||||||||
Exercised | (2,328,965 | ) | $ | 199.84 | |||||||||
Forfeited/canceled | (496,342 | ) | $ | 293.31 | |||||||||
Balance at December 31, 2014 | 7,240,419 | $ | 215.56 | 4.3 | $ | 2,266 | |||||||
Exercisable as of December 31, 2014 | 6,213,230 | $ | 199.57 | 3.9 | $ | 2,044 | |||||||
Exercisable as of December 31, 2014 and expected to vest thereafter(2) | 7,129,380 | $ | 214.06 | 4.3 | $ | 2,242 | |||||||
(1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock prices of $530.66 and $526.40 of our Class A common stock and Class C capital stock, respectively, on December 31, 2014. | |||||||||||||
(2) Options expected to vest reflect an estimated forfeiture rate. | |||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarizes the activities for our unvested RSUs for the year ended December 31, 2014: | ||||||||||||
Unvested Restricted Stock Units | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Unvested at December 31, 2013 | 21,953,960 | $ | 359.2 | ||||||||||
Granted | 15,520,343 | $ | 573.71 | ||||||||||
Vested | (10,742,740 | ) | $ | 361.92 | |||||||||
Forfeited/canceled | (2,112,014 | ) | $ | 420.28 | |||||||||
Unvested at December 31, 2014 | 24,619,549 | $ | 487.8 | ||||||||||
Expected to vest after December 31, 2014 (1) | 21,958,176 | $ | 487.8 | ||||||||||
(1) | RSUs expected to vest reflect an estimated forfeiture rate. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following (in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Current: | ||||||||||||
Federal | $ | 2,484 | $ | 2,217 | $ | 2,424 | ||||||
State | 169 | 117 | 140 | |||||||||
Foreign | 312 | 711 | 774 | |||||||||
Total | 2,965 | 3,045 | 3,338 | |||||||||
Deferred: | ||||||||||||
Federal | (109 | ) | (421 | ) | 29 | |||||||
State | 5 | 0 | 7 | |||||||||
Foreign | 55 | (72 | ) | (43 | ) | |||||||
Total | (49 | ) | (493 | ) | (7 | ) | ||||||
Provision for income taxes | $ | 2,916 | $ | 2,552 | $ | 3,331 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of federal statutory income tax rate to our effective income tax rate is as follows (in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Expected provision at federal statutory tax rate (35%) | $ | 5,064 | $ | 5,567 | $ | 6,041 | ||||||
State taxes, net of federal benefit | 114 | 123 | 115 | |||||||||
Change in valuation allowance | 1,921 | (641 | ) | (164 | ) | |||||||
Foreign rate differential | (2,208 | ) | (2,659 | ) | (2,400 | ) | ||||||
Federal research credit | 0 | (433 | ) | (318 | ) | |||||||
Basis difference in investment of Arris | (1,960 | ) | 644 | 0 | ||||||||
Other adjustments | (15 | ) | (49 | ) | 57 | |||||||
Provision for income taxes | $ | 2,916 | $ | 2,552 | $ | 3,331 | ||||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities are as follows (in millions): | |||||||||||
As of December 31, | ||||||||||||
2013 | 2014 | |||||||||||
Deferred tax assets: | ||||||||||||
Stock-based compensation expense | $ | 283 | $ | 376 | ||||||||
State taxes | 204 | 133 | ||||||||||
Investment loss | 266 | 133 | ||||||||||
Legal settlement accruals | 45 | 175 | ||||||||||
Accrued employee benefits | 477 | 671 | ||||||||||
Accruals and reserves not currently deductible | 390 | 175 | ||||||||||
Net operating losses | 279 | 207 | ||||||||||
Tax credits | 394 | 262 | ||||||||||
Basis difference in investment of Arris | 1,372 | 1,347 | ||||||||||
Other | 250 | 243 | ||||||||||
Total deferred tax assets | 3,960 | 3,722 | ||||||||||
Valuation allowance | (1,899 | ) | (1,659 | ) | ||||||||
Total deferred tax assets net of valuation allowance | 2,061 | 2,063 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | (537 | ) | (852 | ) | ||||||||
Identified intangibles | (1,479 | ) | (965 | ) | ||||||||
Mark-to-market investments | 6 | (273 | ) | |||||||||
Renewable energy investments | (223 | ) | (430 | ) | ||||||||
Other | (185 | ) | (123 | ) | ||||||||
Total deferred tax liabilities | (2,418 | ) | (2,643 | ) | ||||||||
Net deferred tax liabilities | $ | (357 | ) | $ | (580 | ) | ||||||
Summary of Income Tax Contingencies | The following table summarizes the activity related to our gross unrecognized tax benefits from January 1, 2012 to December 31, 2014 (in millions): | |||||||||||
Balance as of January 1, 2012 | $ | 1,564 | ||||||||||
Increases related to prior year tax positions | 60 | |||||||||||
Decreases related to prior year tax positions | (40 | ) | ||||||||||
Decreases related to settlement with tax authorities | (62 | ) | ||||||||||
Increases related to current year tax positions | 411 | |||||||||||
Balance as of December 31, 2012 | 1,933 | |||||||||||
Increases related to prior year tax positions | 158 | |||||||||||
Decreases related to prior year tax positions | (37 | ) | ||||||||||
Decreases related to settlement with tax authorities | (78 | ) | ||||||||||
Increases related to current year tax positions | 595 | |||||||||||
Balance as of December 31, 2013 | 2,571 | |||||||||||
Increases related to prior year tax positions | 66 | |||||||||||
Decreases related to prior year tax positions | (44 | ) | ||||||||||
Decreases related to settlement with tax authorities | (1 | ) | ||||||||||
Increases related to current year tax positions | 820 | |||||||||||
Balance as of December 31, 2014 | $ | 3,412 | ||||||||||
Information_about_Segments_and1
Information about Segments and Geographic Areas (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Revenue by Geography | Revenues by geography are based on the billing addresses of our customers. The following tables set forth revenues and long-lived assets by geographic area (in millions): | |||||||||||
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
Revenues: | ||||||||||||
United States | $ | 21,287 | $ | 24,752 | $ | 28,139 | ||||||
United Kingdom | 4,846 | 5,600 | 6,483 | |||||||||
Rest of the world | 19,906 | 25,167 | 31,379 | |||||||||
Total revenues | $ | 46,039 | $ | 55,519 | $ | 66,001 | ||||||
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | ||||||||||||
As of December 31, | ||||||||||||
2013 (1) | 2014 | |||||||||||
Long-lived assets: | ||||||||||||
United States | $ | 24,004 | $ | 37,355 | ||||||||
International | 14,030 | 13,093 | ||||||||||
Total long-lived assets | $ | 38,034 | $ | 50,448 | ||||||||
(1) Includes the long-lived assets from the Motorola Mobile segment as of December 31, 2013. |
Google_Inc_and_Summary_of_Sign3
Google Inc. and Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Apr. 02, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | ||||
Cash received from the exercise of stock options | $465 | $1,174 | $736 | ||
Total direct tax benefit realized, including the excess tax benefit from stock-based award activity | 1,356 | 1,195 | 747 | ||
Stock-based compensation expense | 4,279 | 3,343 | 2,692 | ||
Percentage of revenues generated from customers in the United States | 43.00% | 45.00% | 46.00% | ||
Goodwill, Impairment Loss | 0 | 0 | 0 | ||
Advertising and promotional expenses | 3,004 | 2,389 | 1,992 | ||
Continuing Operations | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Stock-based compensation expense | 4,175 | 3,127 | 2,473 | ||
Stock-based compensation expense, related tax benefits | 867 | 685 | 545 | ||
Discontinued Operations | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Stock-based compensation expense | 104 | 216 | 219 | ||
Stock-based compensation expense, related tax benefits | 30 | 59 | 57 | ||
Minimum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 2 years | ||||
Acquired intangible assets, estimated useful lives | 1 year | ||||
Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 5 years | ||||
Acquired intangible assets, estimated useful lives | 12 years | ||||
Building | Maximum | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Property and equipment, estimated useful lives | 25 years | ||||
Sales Revenue, Net | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Concentration Risk, Number of Customers | 0 | 0 | 0 | ||
Concentration Risk, Percentage | 10.00% | ||||
Patent Royalty Licensing Agreement | |||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||
Impairment of intangible asset | $378 |
Google_Inc_and_Summary_of_Sign4
Google Inc. and Summary of Significant Accounting Policies (Revenue by Revenue Source) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue from External Customer [Line Items] | |||
Advertising revenues | $59,056 | $50,547 | $43,686 |
Other revenues | 6,945 | 4,972 | 2,353 |
Revenues | 66,001 | 55,519 | 46,039 |
Google websites | |||
Revenue from External Customer [Line Items] | |||
Advertising revenues | 45,085 | 37,422 | 31,221 |
Google Network Members' websites | |||
Revenue from External Customer [Line Items] | |||
Advertising revenues | 13,971 | 13,125 | 12,465 |
Revenues | |||
Revenue from External Customer [Line Items] | |||
Revenues | $66,001 | $55,519 | $46,039 |
Narrative_Details
(Narrative) (Details) (USD $) | 12 Months Ended | ||||||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Apr. 17, 2013 | Oct. 29, 2014 | 31-May-11 |
Financial Instruments and Fair Value [Line Items] | |||||||
Gross realized gains on the sale of our marketable securities | $238,000,000 | $416,000,000 | $383,000,000 | ||||
Gross realized losses on the sale of our marketable securities | 85,000,000 | 258,000,000 | 101,000,000 | ||||
Equity method investments | 1,300,000,000 | 1,000,000,000 | |||||
Cost method investments | 1,800,000,000 | 1,000,000,000 | |||||
Cash collateral received from derivative financial instruments | 268,000,000 | 35,000,000 | |||||
Forward-starting interest swaps, anticipated debt issuance amount | 1,000,000,000 | ||||||
Effective portion of our cash flow hedges before tax effect | 817,000,000 | ||||||
Cash flow hedges, expected to be reclassified from AOCI to revenues within the next 12 months | 645,000,000 | ||||||
Interest rate contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 150,000,000 | 13,000,000 | |||||
Cash Flow Hedging Relationship | Foreign exchange contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 13,600,000,000 | 10,000,000,000 | |||||
Foreign exchange option contracts, maximum maturities | 36 months | ||||||
Derivatives in Fair Value Hedging Relationship | Foreign exchange contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 1,500,000,000 | 1,200,000,000 | |||||
Derivatives in Fair Value Hedging Relationship | Interest rate contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 175,000,000 | ||||||
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate swap | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 1,000,000,000 | ||||||
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Forward-starting interest swaps, notional amount | 6,200,000,000 | 9,400,000,000 | |||||
Motorola Home | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Value of shares received in divestiture | 175,000,000 | ||||||
Number of shares of common stock received as part of sale consideration | 10.6 | ||||||
Motorola Mobile | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Value of shares received in divestiture | 750,000,000 | ||||||
Number of shares of common stock received as part of sale consideration | 519.1 | ||||||
Unsecured debt | |||||||
Financial Instruments and Fair Value [Line Items] | |||||||
Debt instrument issued | $1,000,000,000 | $3,000,000,000 |
Financial_Instruments_Cash_Cas
Financial Instruments (Cash, Cash Equivalents and Marketable Securities Measured at Adjusted Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Value By Significant Investment Category) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
In Millions, unless otherwise specified | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | $63,935 | $58,679 | ||||
Gross Unrealized Gains | 752 | 396 | ||||
Gross Unrealized Losses | -292 | -358 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 64,395 | 58,717 | ||||
Cash and Cash Equivalents | 18,347 | 18,898 | 14,778 | 9,983 | ||
Marketable Securities | 46,048 | 39,819 | ||||
Cash | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 9,863 | 9,909 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 9,863 | 9,909 | ||||
Cash and Cash Equivalents | 9,863 | 9,909 | ||||
Marketable Securities | 0 | 0 | ||||
Level 1 | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 18,840 | 22,901 | ||||
Gross Unrealized Gains | 465 | 190 | ||||
Gross Unrealized Losses | -68 | -37 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 19,237 | 23,054 | ||||
Cash and Cash Equivalents | 3,660 | 6,929 | ||||
Marketable Securities | 15,577 | 16,125 | ||||
Level 1 | Money market and other funds | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 2,532 | 4,428 | ||||
Gross Unrealized Gains | 0 | 0 | ||||
Gross Unrealized Losses | 0 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 2,532 | 4,428 | ||||
Cash and Cash Equivalents | 2,532 | 4,428 | ||||
Marketable Securities | 0 | 0 | ||||
Level 1 | U.S. government notes | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 15,320 | 18,276 | ||||
Gross Unrealized Gains | 37 | 23 | ||||
Gross Unrealized Losses | -4 | -37 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 15,353 | 18,262 | ||||
Cash and Cash Equivalents | 1,128 | 2,501 | ||||
Marketable Securities | 14,225 | 15,761 | ||||
Level 1 | Marketable equity securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 988 | 197 | ||||
Gross Unrealized Gains | 428 | 167 | ||||
Gross Unrealized Losses | -64 | 0 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 1,352 | 364 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 1,352 | 364 | ||||
Level 2 | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 35,232 | 25,869 | ||||
Gross Unrealized Gains | 287 | 206 | ||||
Gross Unrealized Losses | -224 | -321 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 35,295 | 25,754 | ||||
Cash and Cash Equivalents | 4,824 | 2,060 | ||||
Marketable Securities | 30,471 | 23,694 | ||||
Level 2 | Money market and other funds | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 1,762 | [1] | 1,270 | [1] | ||
Gross Unrealized Gains | 0 | [1] | 0 | [1] | ||
Gross Unrealized Losses | 0 | [1] | 0 | [1] | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 1,762 | [1] | 1,270 | [1] | ||
Cash and Cash Equivalents | 1,762 | [1] | 1,270 | [1] | ||
Marketable Securities | 0 | [1] | 0 | [1] | ||
Level 2 | Fixed-income Bond Funds [Member] | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 385 | [2] | ||||
Gross Unrealized Gains | 0 | [2] | ||||
Gross Unrealized Losses | -38 | [2] | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 347 | [2] | ||||
Cash and Cash Equivalents | 0 | [2] | ||||
Marketable Securities | 347 | [2] | ||||
Level 2 | Time deposits | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 2,409 | [3] | 1,207 | [3] | ||
Gross Unrealized Gains | 0 | [3] | 0 | [3] | ||
Gross Unrealized Losses | 0 | [3] | 0 | [3] | ||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 2,409 | [3] | 1,207 | [3] | ||
Cash and Cash Equivalents | 2,309 | [3] | 790 | [3] | ||
Marketable Securities | 100 | [3] | 417 | [3] | ||
Level 2 | U.S. government agencies | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 2,327 | 4,575 | ||||
Gross Unrealized Gains | 8 | 3 | ||||
Gross Unrealized Losses | -1 | -3 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 2,334 | 4,575 | ||||
Cash and Cash Equivalents | 750 | 0 | ||||
Marketable Securities | 1,584 | 4,575 | ||||
Level 2 | Foreign government bonds | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 1,828 | 1,502 | ||||
Gross Unrealized Gains | 22 | 5 | ||||
Gross Unrealized Losses | -10 | -26 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 1,840 | 1,481 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 1,840 | 1,481 | ||||
Level 2 | Municipal securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 3,370 | 2,904 | ||||
Gross Unrealized Gains | 33 | 9 | ||||
Gross Unrealized Losses | -6 | -36 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 3,397 | 2,877 | ||||
Cash and Cash Equivalents | 3 | 0 | ||||
Marketable Securities | 3,394 | 2,877 | ||||
Level 2 | Corporate debt securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 11,499 | 7,300 | ||||
Gross Unrealized Gains | 114 | 162 | ||||
Gross Unrealized Losses | -122 | -67 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 11,491 | 7,395 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 11,491 | 7,395 | ||||
Level 2 | Agency residential mortgage-backed securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 8,196 | 5,969 | ||||
Gross Unrealized Gains | 109 | 27 | ||||
Gross Unrealized Losses | -42 | -187 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 8,263 | 5,809 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | 8,263 | 5,809 | ||||
Level 2 | Asset-backed securities | ||||||
Cash, cash equivalents and marketable securities [Line Items] | ||||||
Adjusted Cost | 3,456 | 1,142 | ||||
Gross Unrealized Gains | 1 | 0 | ||||
Gross Unrealized Losses | -5 | -2 | ||||
Total cash, cash equivalents, and marketable securities (including securities loaned of $5,059 and $4,058) | 3,452 | 1,140 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Marketable Securities | $3,452 | $1,140 | ||||
[1] | The balances as of December 31, 2013 and December 31, 2014 were related to cash collateral received in connection with our securities lending program, which was invested in reverse repurchase agreements maturing within three months. See below for further discussion of this program. | |||||
[2] | Fixed-income bond funds consist of mutual funds that primarily invest in corporate and government bonds. | |||||
[3] | The majority of our time deposits are foreign deposits. |
Financial_Instruments_Contract
Financial Instruments (Contractual Maturity Date of Marketable Debt Securities) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Available-for-sale Securities, Debt Maturities, Single Maturity Date [Abstract] | |
Due in 1 year | $4,547 |
Due in 1 year through 5 years | 24,123 |
Due in 5 years through 10 years | 7,083 |
Due after 10 years | 8,596 |
Total | $44,349 |
Financial_Instruments_Gross_Un
Financial Instruments (Gross Unrealized Losses and Fair Values for Investments in Unrealized Loss Position) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | $16,337 | $14,300 |
Less than 12 Months, Unrealized Loss | -234 | -326 |
12 Months or Greater, Fair Value | 2,784 | 719 |
12 Months or Greater, Unrealized Loss | -58 | -32 |
Total Fair Value | 19,121 | 15,019 |
Total Unrealized Loss | -292 | -358 |
U.S. government notes | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 4,490 | 4,404 |
Less than 12 Months, Unrealized Loss | -4 | -37 |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total Fair Value | 4,490 | 4,404 |
Total Unrealized Loss | -4 | -37 |
U.S. government agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 830 | 496 |
Less than 12 Months, Unrealized Loss | -1 | -3 |
12 Months or Greater, Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Loss | 0 | 0 |
Total Fair Value | 830 | 496 |
Total Unrealized Loss | -1 | -3 |
Foreign government bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 255 | 899 |
Less than 12 Months, Unrealized Loss | -7 | -23 |
12 Months or Greater, Fair Value | 43 | 83 |
12 Months or Greater, Unrealized Loss | -3 | -3 |
Total Fair Value | 298 | 982 |
Total Unrealized Loss | -10 | -26 |
Municipal securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 877 | 1,210 |
Less than 12 Months, Unrealized Loss | -3 | -32 |
12 Months or Greater, Fair Value | 174 | 99 |
12 Months or Greater, Unrealized Loss | -3 | -4 |
Total Fair Value | 1,051 | 1,309 |
Total Unrealized Loss | -6 | -36 |
Corporate debt securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 5,851 | 2,583 |
Less than 12 Months, Unrealized Loss | -112 | -62 |
12 Months or Greater, Fair Value | 225 | 69 |
12 Months or Greater, Unrealized Loss | -10 | -5 |
Total Fair Value | 6,076 | 2,652 |
Total Unrealized Loss | -122 | -67 |
Agency residential mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 609 | 4,065 |
Less than 12 Months, Unrealized Loss | -1 | -167 |
12 Months or Greater, Fair Value | 2,168 | 468 |
12 Months or Greater, Unrealized Loss | -41 | -20 |
Total Fair Value | 2,777 | 4,533 |
Total Unrealized Loss | -42 | -187 |
Asset-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 2,388 | 643 |
Less than 12 Months, Unrealized Loss | -4 | -2 |
12 Months or Greater, Fair Value | 174 | 0 |
12 Months or Greater, Unrealized Loss | -1 | 0 |
Total Fair Value | 2,562 | 643 |
Total Unrealized Loss | -5 | -2 |
Fixed-income Bond Funds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 347 | |
Less than 12 Months, Unrealized Loss | -38 | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Loss | 0 | |
Total Fair Value | 347 | |
Total Unrealized Loss | -38 | |
Marketable equity securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 Months, Fair Value | 690 | |
Less than 12 Months, Unrealized Loss | -64 | |
12 Months or Greater, Fair Value | 0 | |
12 Months or Greater, Unrealized Loss | 0 | |
Total Fair Value | 690 | |
Total Unrealized Loss | ($64) |
Financial_Instruments_Fair_Val
Financial Instruments (Fair Values of Outstanding Derivative Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Assets: | ||
Derivative Assets | $852 | $232 |
Derivative Liabilities: | ||
Derivative Liabilities | 4 | 4 |
Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 851 | 145 |
Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 3 | 4 |
Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 1 | 87 |
Level 2 | Interest rate contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 1 | |
Fair Value of Derivatives Designated as Hedging Instruments | ||
Derivative Assets: | ||
Derivative Assets | 852 | 220 |
Derivative Liabilities: | ||
Derivative Liabilities | 1 | |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 851 | 133 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 1 | 87 |
Fair Value of Derivatives Designated as Hedging Instruments | Level 2 | Interest rate contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 1 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | ||
Derivative Assets: | ||
Derivative Assets | 0 | 12 |
Derivative Liabilities: | ||
Derivative Liabilities | 3 | |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 0 | 12 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Foreign exchange contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 3 | 4 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Interest rate contracts | Prepaid revenue share, expenses and other assets, current and non-current | ||
Derivative Assets: | ||
Derivative Assets | 0 | 0 |
Fair Value of Derivatives Not Designated as Hedging Instruments | Level 2 | Interest rate contracts | Accrued expenses and other current liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | $0 |
Financial_Instruments_Effect_o
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | $898 | $178 | $74 | |||
Gains Reclassified from AOCI into Income (Effective Portion) | 175 | 95 | 217 | |||
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) (1) | -275 | [1] | -280 | [1] | -447 | [1] |
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | 929 | 92 | 73 | |||
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Revenues | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains Reclassified from AOCI into Income (Effective Portion) | 171 | 95 | 217 | |||
Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Interest and other income, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) (1) | -279 | [1] | -280 | [1] | -447 | [1] |
Derivatives in Cash Flow Hedging Relationship | Interest rate contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in OCI on Derivatives Before Tax Effect (Effective Portion) | -31 | 86 | 1 | |||
Derivatives in Cash Flow Hedging Relationship | Interest rate contracts | Interest and other income, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains Reclassified from AOCI into Income (Effective Portion) | 4 | 0 | 0 | |||
Gains (Losses) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing and Ineffective Portion) (1) | 4 | [1] | 0 | [1] | 0 | [1] |
Derivatives in Fair Value Hedging Relationship | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in Income on Derivatives - Total | -8 | [2] | -9 | [2] | -8 | [2] |
Derivatives in Fair Value Hedging Relationship | Interest and other income, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in Income on Derivatives - Foreign exchange contracts | 115 | [2] | 16 | [2] | -31 | [2] |
Gains (Losses) Recognized in Income on Derivatives - Hedged item | -123 | [2] | -25 | [2] | 23 | [2] |
Fair Value of Derivatives Not Designated as Hedging Instruments | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in Income on Derivatives | 239 | 122 | -73 | |||
Fair Value of Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | Interest and other income, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in Income on Derivatives | 237 | 118 | -67 | |||
Fair Value of Derivatives Not Designated as Hedging Instruments | Interest rate contracts | Interest and other income, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Losses) Recognized in Income on Derivatives | $2 | $4 | ($6) | |||
[1] | Gains (losses) related to the ineffective portion of the hedges were not material in all periods presented. | |||||
[2] | Losses related to the amount excluded from effectiveness testing of the hedges were $8 million, $9 million, and $8 million for the years ended December 31, 2012, 2013, and 2014. |
Financial_Instruments_Effect_o1
Financial Instruments (Effect of Derivative Instruments on Income and Accumulated Other Comprehensive Income Phantom) (Details) (Derivatives in Fair Value Hedging Relationship, Interest and other income, net, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives in Fair Value Hedging Relationship | Interest and other income, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Losses related to the amount excluded from effectiveness testing of the hedges | $8 | $9 | $8 |
Financial_Instruments_Offsetti
Financial Instruments (Offsetting of Financial Assets and Financial Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivative Assets [Abstract] | ||||
Derivatives - Gross Amounts of Recognized Assets | $852 | $232 | ||
Derivatives - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Derivatives - Net Presented in the Consolidated Balance Sheets | 852 | 232 | ||
Derivatives - Financial Instruments | -1 | [1] | -2 | [1] |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | -251 | -35 | ||
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | -412 | -52 | ||
Derivatives - Net Assets Exposed | 188 | 143 | ||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | 2,637 | 1,370 | ||
Reverse repurchase agreements - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Reverse repurchase agreements - Net Presented in the Consolidated Balance Sheets | 2,637 | [2] | 1,370 | [2] |
Reverse repurchase agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | 0 | ||
Reverse repurchase agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 | ||
Reverse repurchase agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | -2,637 | -1,370 | ||
Reverse repurchase agreements - Net Assets Exposed | 0 | 0 | ||
Offsetting Derivative Asset, Securities Purchased under Agreements to Resell, Securities Borrowed [Abstract] | ||||
Total - Gross Amounts of Recognized Assets | 3,489 | 1,602 | ||
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Total - Net Presented in the Consolidated Balance Sheets | 3,489 | 1,602 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -1 | -2 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | -251 | -35 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Received | -3,049 | -1,422 | ||
Total - Net Assets Exposed | 188 | 143 | ||
Offsetting Derivative Liabilities [Abstract] | ||||
Derivatives - Gross Amounts of Recognized Liabilities | 4 | 4 | ||
Derivatives - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Derivatives - Net Presented in the Consolidated Balance Sheets | 4 | 4 | ||
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -1 | [3] | -2 | [3] |
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 | ||
Derivatives - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Pledged | 0 | 0 | ||
Derivatives - Net Liabilities | 3 | 2 | ||
Offsetting Securities Loaned [Abstract] | ||||
Securities lending agreements - Gross Amounts of Recognized Liabilities | 2,778 | 1,374 | ||
Securities lending agreements - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Securities lending agreements - Net Presented in the Consolidated Balance Sheets | 2,778 | 1,374 | ||
Securities lending agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | 0 | ||
Securities lending agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 | ||
Securities lending agreements - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Pledged | -2,740 | -1,357 | ||
Securities lending agreements - Net Liabilities | 38 | 17 | ||
Offsetting Derivative Liability, Securities Sold under Agreements to Resell, Securities Loaned [Abstract] | ||||
Total - Gross Amounts of Recognized Liabilities | 2,782 | 1,378 | ||
Total - Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 | ||
Total - Net Presented in the Consolidated Balance Sheets | 2,782 | 1,378 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -1 | -2 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 | ||
Total - Gross Amounts Not Offset in the Consolidated Balance Sheets - Non-Cash Collateral Pledged | -2,740 | -1,357 | ||
Total - Net Liabilities | 41 | 19 | ||
Cash and cash equivalents | ||||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | 1,762 | 1,270 | ||
Receivable under reverse repurchase agreements | ||||
Offsetting Securities Purchased under Agreements to Resell and Securities Borrowed [Abstract] | ||||
Reverse repurchase agreements - Gross Amounts of Recognized Assets | $875 | $100 | ||
[1] | The balances at December 31, 2013 and December 31, 2014 were related to derivative liabilities which are allowed to be net settled against derivative assets in accordance with our master netting agreements. | |||
[2] | The balances at December 31, 2013 and December 31, 2014 included $1,270 million and $1,762 million recorded in cash and cash equivalents, respectively, and $100 million and $875 million recorded in receivable under reverse repurchase agreements, respectively. | |||
[3] | The balances at December 31, 2013 and December 31, 2014 were related to derivative assets which are allowed to be net settled against derivative liabilities in accordance with our master netting agreements. |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 19-May-14 | Feb. 28, 2014 | 31-May-11 | |
Loan | ||||||
Short And Long Term Debt [Line Items] | ||||||
Debt financing program through the issuance of commercial paper | $3,000,000,000 | |||||
Amounts of commercial paper outstanding | 2,000,000,000 | 2,000,000,000 | ||||
Weighted average yield for commercial paper outstanding | 0.10% | 0.10% | ||||
Revolving credit facility, amount outstanding | 0 | 0 | ||||
Repayments of Debt | 11,643,000,000 | 11,325,000,000 | 14,781,000,000 | |||
Estimated fair value of long-term debt | 3,100,000,000 | 3,100,000,000 | ||||
1.25% Notes due on May 19, 2014 | ||||||
Short And Long Term Debt [Line Items] | ||||||
Repayments of Debt | 1,000,000,000 | |||||
2.125% Notes due on May 19, 2016 | ||||||
Short And Long Term Debt [Line Items] | ||||||
Effective interest rate | 2.24% | |||||
3.625% Notes due on May 19, 2021 | ||||||
Short And Long Term Debt [Line Items] | ||||||
Effective interest rate | 3.73% | |||||
3.375% Notes due on February 25, 2024 | ||||||
Short And Long Term Debt [Line Items] | ||||||
Effective interest rate | 3.38% | |||||
Unsecured debt | ||||||
Short And Long Term Debt [Line Items] | ||||||
Debt instrument issued | 1,000,000,000 | 3,000,000,000 | ||||
Number of unsecured senior notes tranches | 3 | |||||
Commercial paper financing credit facility | ||||||
Short And Long Term Debt [Line Items] | ||||||
Debt financing program through the issuance of commercial paper | $3,000,000,000 |
Debt_LongTerm_Debt_Details
Debt (Long-Term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Short-term portion of long-term debt: | ||
Capital lease obligation | $10 | $9 |
Total | 10 | 1,009 |
Long-term debt: | ||
Unamortized discount for the Notes above | -8 | -10 |
Subtotal | 2,992 | 1,990 |
Capital lease obligation | 236 | 246 |
Total | 3,228 | 2,236 |
1.25% Notes due on May 19, 2014 | ||
Short-term portion of long-term debt: | ||
Short-term Portion of Notes | 0 | 1,000 |
2.125% Notes due on May 19, 2016 | ||
Long-term debt: | ||
Long-Term Debt, gross | 1,000 | 1,000 |
3.625% Notes due on May 19, 2021 | ||
Long-term debt: | ||
Long-Term Debt, gross | 1,000 | 1,000 |
3.375% Notes due on February 25, 2024 | ||
Long-term debt: | ||
Long-Term Debt, gross | $1,000 | $0 |
Debt_Schedule_of_Long_Term_Deb
Debt (Schedule of Long Term Debt Phantom) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
1.25% Notes due on May 19, 2014 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 1.25% | 1.25% |
Long-term debt, maturity date | 19-May-14 | 19-May-14 |
2.125% Notes due on May 19, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 2.13% | 2.13% |
Long-term debt, maturity date | 19-May-16 | 19-May-16 |
3.625% Notes due on May 19, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 3.63% | 3.63% |
Long-term debt, maturity date | 19-May-21 | 19-May-21 |
Unsecured Senior Notes Three Point Three Seven Five Percent Due February Twenty Five Twenty Twenty Four [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 3.38% | 3.38% |
Long-term debt, maturity date | 25-Feb-24 | 25-Feb-24 |
Debt_Future_Principal_Payments
Debt (Future Principal Payments for Borrowings) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2015 | $10 |
2016 | 1,236 |
2017 | 0 |
2018 | 0 |
Thereafter | 2,000 |
Total | $3,246 |
Balance_Sheet_Components_Prope
Balance Sheet Components (Property and Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment, Net [Abstract] | ||
Information technology assets | $10,918 | $9,094 |
Land and buildings | 13,326 | 7,488 |
Construction in progress | 6,555 | 5,602 |
Leasehold improvements | 1,868 | 1,576 |
Furniture and fixtures | 79 | 77 |
Total | 32,746 | 23,837 |
Less: accumulated depreciation and amortization | 8,863 | 7,313 |
Property and equipment, net | 23,883 | 16,524 |
Construction in progress | ||
Property, Plant and Equipment, Net [Abstract] | ||
Cost basis of property and equipment under capital lease | $258 | $258 |
Balance_Sheet_Components_Notes
Balance Sheet Components (Notes Receivable) (Details) (Motorola Mobile, USD $) | 0 Months Ended | 12 Months Ended |
Oct. 29, 2014 | Dec. 31, 2014 | |
Motorola Mobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Promissory note received in connection with divestiture, term | 3 years | 3 years |
Receivable with Imputed Interest, Effective Yield (Interest Rate) | 4.50% | |
Principal of the Note Receivable | $1,500,000,000 | $1,500,000,000 |
Less: unamortized discount for the Note Receivable | -175,000,000 | |
Total | 1,325,000,000 | |
Allowance on note receivable | $0 |
Balance_Sheet_Components_Compo
Balance Sheet Components (Components of Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $125 | $538 | |
Other comprehensive income (loss) before reclassifications | 160 | -191 | |
Amounts reclassified from AOCI | -258 | -222 | |
Other comprehensive income (loss) | -98 | -413 | 262 |
Ending Balance | 27 | 125 | 538 |
Foreign Currency Translation Adjustments | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 16 | -73 | |
Other comprehensive income (loss) before reclassifications | -996 | 89 | |
Amounts reclassified from AOCI | 0 | 0 | |
Other comprehensive income (loss) | -996 | 89 | |
Ending Balance | -980 | 16 | |
Unrealized Gains (Losses) on Available-for-Sale Investments | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 50 | 604 | |
Other comprehensive income (loss) before reclassifications | 505 | -392 | |
Amounts reclassified from AOCI | -134 | -162 | |
Other comprehensive income (loss) | 371 | -554 | |
Ending Balance | 421 | 50 | |
Unrealized Gains on Cash Flow Hedges | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 59 | 7 | |
Other comprehensive income (loss) before reclassifications | 651 | 112 | |
Amounts reclassified from AOCI | -124 | -60 | |
Other comprehensive income (loss) | 527 | 52 | |
Ending Balance | $586 | $59 |
Balance_Sheet_Components_Recla
Balance Sheet Components (Reclassifications Out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Revenues | $66,001 | $55,519 | $46,039 |
Interest and other income, net | 763 | 496 | 635 |
Allocation of undistributed earnings for basic computation - discontinued operations | 516 | -427 | -816 |
Provision for income taxes | -3,331 | -2,552 | -2,916 |
Net income | 14,444 | 12,920 | 10,737 |
Reclassification out of AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Net income | 258 | 222 | |
Reclassification out of AOCI | Unrealized gains on available-for-sale investments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest and other income, net | 153 | 158 | |
Allocation of undistributed earnings for basic computation - discontinued operations | 0 | 43 | |
Provision for income taxes | -19 | -39 | |
Net income | 134 | 162 | |
Reclassification out of AOCI | Unrealized gains on cash flow hedges | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Revenues | 171 | 95 | |
Provision for income taxes | -51 | -35 | |
Net income | 124 | 60 | |
Reclassification out of AOCI | Unrealized gains on cash flow hedges | Interest rate contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Interest and other income, net | $4 | $0 |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Jul. 31, 2014 | Aug. 31, 2014 | Jun. 30, 2013 |
Business Acquisition [Line Items] | |||||||
Goodwill | $15,599 | $11,492 | |||||
Realized gain on equity interest | 126 | 0 | 0 | ||||
Patents and developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Acquired intangible assets, weighted-average useful life | 5 years 1 month 0 days | 4 years 9 months 18 days | |||||
Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Acquired intangible assets, weighted-average useful life | 4 years 6 months 0 days | 5 years 6 months | |||||
Trade names and other | |||||||
Business Acquisition [Line Items] | |||||||
Acquired intangible assets, weighted-average useful life | 6 years 11 months 0 days | 3 years 6 months | |||||
Nest Labs | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of ownership before acquisition | 12.00% | ||||||
Total acquisition price | 2,600 | ||||||
Fair value of equity in acquiree | 152 | ||||||
Business acquisition, cash acquired | 51 | ||||||
Acquired intangible assets | 430 | ||||||
Goodwill | 2,300 | ||||||
Realized gain on equity interest | 103 | ||||||
Net liabilities assumed | 84 | ||||||
Dropcam Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, cash acquired | 11 | ||||||
Acquired intangible assets | 55 | ||||||
Goodwill | 452 | ||||||
Total cash consideration | 517 | ||||||
Net liabilities assumed | 1 | ||||||
Skybox Imaging | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, cash acquired | 6 | ||||||
Acquired intangible assets | 69 | ||||||
Goodwill | 388 | ||||||
Total cash consideration | 478 | ||||||
Total assets acquired | 15 | ||||||
Series of individually immaterial business acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Total acquisition price | 1,466 | ||||||
Fair value of equity in acquiree | 33 | ||||||
Business acquisition, cash acquired | 65 | ||||||
Acquired intangible assets | 405 | 268 | |||||
Goodwill | 1,045 | 238 | |||||
Total cash consideration | 489 | ||||||
Net liabilities assumed | 49 | 17 | |||||
Amount of goodwill expected to be deductible for tax purposes | 55 | 38 | |||||
Waze Limited | |||||||
Business Acquisition [Line Items] | |||||||
Acquired intangible assets | 193 | ||||||
Goodwill | 841 | ||||||
Total cash consideration | 969 | ||||||
Net liabilities assumed | $65 |
Collaboration_Agreement_Narrat
Collaboration Agreement (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 | Jan. 15, 2015 |
Calico | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Payments to acquire interest in joint venture | $240 | |
Research and Development Arrangement | Calico | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Payments to acquire interest in joint venture | 250 | |
Research Commitment | 500 | |
Research and Development Arrangement | Google Inc. | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Research Commitment | 490 | |
AbbVie Inc | Calico | Subsequent Event | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Payments to acquire interest in joint venture | 500 | |
AbbVie Inc | Research and Development Arrangement | Calico | Subsequent Event | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Research Commitment | $750 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Goodwill [Roll Forward] | |
Balance as of December 31, 2013 | $11,492 |
Goodwill acquired | 4,208 |
Goodwill disposed | -43 |
Goodwill adjustment | -58 |
Balance as of December 31, 2014 | $15,599 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Acquisition-Related Intangible Assets that are being Amortized) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | $8,653 | $9,586 | ||
Accumulated Amortization | 4,046 | 3,520 | ||
Net Carrying Amount | 4,607 | 6,066 | ||
Patents and developed technology | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 6,547 | 7,282 | ||
Accumulated Amortization | 2,513 | 2,102 | ||
Net Carrying Amount | 4,034 | 5,180 | ||
Weighted-average useful life | 7 years 10 months 15 days | |||
Customer relationships | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 1,410 | 1,770 | ||
Accumulated Amortization | 1,168 | 1,067 | ||
Net Carrying Amount | 242 | 703 | ||
Weighted-average useful life | 5 years 11 months 20 days | |||
Trade names and other | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 696 | 534 | ||
Accumulated Amortization | 365 | 351 | ||
Net Carrying Amount | 331 | 183 | ||
Weighted-average useful life | 5 years 8 months 0 days | |||
Acquisition-related intangible assets | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of acquisition-related intangible assets | 1,079 | 1,011 | 744 | |
Patent Royalty Licensing Agreement | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of intangible asset | $378 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Expected Amortization Expense for Acquisition-Related Intangible Assets) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2015 | $865 |
2016 | 784 |
2017 | 704 |
2018 | 633 |
2019 | 524 |
Thereafter | 1,097 |
Total | $4,607 |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 29, 2014 | Apr. 17, 2013 | Sep. 30, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestiture of businesses | $386,000,000 | $2,525,000,000 | $0 | |||
Motorola Mobile | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Aggregate consideration received in connection with divestiture | 2,900,000,000 | |||||
Consideration received in connection with divestiture at transaction close date | 1,400,000,000 | |||||
Cash received per the purchase and sale agreement | 660,000,000 | |||||
Value of shares received in divestiture | 750,000,000 | |||||
Number of shares of common stock received as part of sale consideration | 519.1 | |||||
Principal of the Note Receivable | 1,500,000,000 | 1,500,000,000 | ||||
Promissory note received in connection with divestiture, term | 3 years | 3 years | ||||
Liability from divestiture | 1,826,000,000 | |||||
Gain on disposal | 740,000,000 | 0 | 0 | |||
Net income from IP licensing arrangement | 254,000,000 | |||||
Motorola Home | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Aggregate consideration received in connection with divestiture | 2,412,000,000 | |||||
Value of shares received in divestiture | 175,000,000 | |||||
Number of shares of common stock received as part of sale consideration | 10.6 | |||||
Liability from divestiture | 458,000,000 | |||||
Gain on disposal | 757,000,000 | 0 | ||||
Proceeds from divestiture of businesses | 2,238,000,000 | |||||
Proceeds from previous divestiture | 174,000,000 | |||||
Motorola Home | Arris | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Investment ownership percentage | 7.80% | |||||
Indemnification Agreement | Motorola Mobile | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Liability from divestiture | 130,000,000 | |||||
Indemnification Agreement | Motorola Home | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Liability from divestiture | $175,000,000 |
Discontinued_Operations_Revenu
Discontinued Operations (Revenues and Earnings Attributable to Divestiture) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Net (loss) income from discontinued operations | $516 | ($427) | ($816) |
Motorola Mobile | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenues | 5,486 | 4,306 | 4,136 |
Loss from discontinued operations before income taxes | -177 | -1,403 | -1,083 |
(Provision for)/Benefits from income taxes | -47 | 270 | 318 |
Gain on disposal | 740 | 0 | 0 |
Net (loss) income from discontinued operations | 516 | -1,133 | -765 |
Motorola Home | |||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Revenues | 804 | 2,028 | |
Loss from discontinued operations before income taxes | -67 | -22 | |
(Provision for)/Benefits from income taxes | 16 | -29 | |
Gain on disposal | 757 | 0 | |
Net (loss) income from discontinued operations | $706 | ($51) |
Discontinued_Operations_Major_
Discontinued Operations (Major Classes of Assets and Liabilities Divested) (Details) (USD $) | Dec. 31, 2014 | Apr. 17, 2013 |
In Millions, unless otherwise specified | ||
Motorola Mobile | ||
Assets: | ||
Cash and cash equivalents | $160 | |
Accounts receivable | 1,103 | |
Inventories | 217 | |
Prepaid expenses and other current assets | 357 | |
Prepaid expenses and other assets, non-current | 290 | |
Property and equipment, net | 542 | |
Intangible assets, net | 985 | |
Goodwill | 43 | |
Total assets | 3,697 | |
Liabilities: | ||
Accounts payable | 1,238 | |
Accrued compensation and benefits | 163 | |
Accrued expenses and other current liabilities | 10 | |
Deferred revenue, current | 165 | |
Other long-term liabilities | 250 | |
Total liabilities | 1,826 | |
Motorola Home | ||
Assets: | ||
Accounts receivable | 424 | |
Inventories | 228 | |
Deferred income taxes, net | 144 | |
Prepaid expenses and other current assets | 152 | |
Property and equipment, net | 282 | |
Intangible assets, net | 701 | |
Other assets, non-current | 182 | |
Total assets | 2,113 | |
Liabilities: | ||
Accounts payable | 169 | |
Accrued expenses and other current liabilities | 289 | |
Total liabilities | $458 |
Interest_and_Other_Income_Net_1
Interest and Other Income, Net (Components of Interest and Other Income, Net) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Other Income and Expenses [Abstract] | ||||||
Interest income | $746 | $766 | $700 | |||
Interest expense | -101 | -81 | -85 | |||
Realized gains on available-for-sale investments, net | 153 | 158 | 282 | |||
Foreign currency exchange losses (1) | -402 | [1] | -379 | [1] | -514 | [1] |
Realized gain on equity interest | 126 | 0 | 0 | |||
Realized gain on non-marketable equity investments | 159 | 0 | 0 | |||
Gain (loss) on divestiture of businesses | 0 | [2] | -57 | [2] | 188 | [2] |
Other income, net | 82 | 89 | 64 | |||
Interest and other income, net | 763 | 496 | 635 | |||
Foreign Currency Transaction Gain (Loss), Net of Recognized Foreign Exchange Contracts | $107 | $121 | $61 | |||
[1] | Includes net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency, net of those recognized on foreign exchange contracts. We recorded net foreign currency transaction losses of $61 million, $121 million, and $107 million in 2012, 2013, and 2014, respectively. | |||||
[2] | Gain on divestiture of Motorola Home business was included in net income (loss) from discontinued operations for the year ended December 31, 2013. Gain on divestiture of Motorola Mobile business was included in net income (loss) from discontinued operations for the year ended December 31, 2014. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Non-cancelable future minimum lease payments related to our October 2014 lease with original lease periods expiring between 2027 and 2028. | $1,000,000,000 | ||
Leases recorded on the balance sheet during the period | 250,000,000 | 258,000,000 | 0 |
Rent expense under operating leases, including co-location arrangements | 570,000,000 | 465,000,000 | 417,000,000 |
Other non-cancelable contractual obligations | 2,700,000,000 | ||
Unused letters of credit | 842,000,000 | ||
Minimum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating lease, expiration date | 31-Dec-15 | ||
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Operating lease, expiration date | 31-Dec-63 | ||
Class C Capital Stock | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Potential Adjustment Payment for Class C | 593,000,000 | ||
Property, Plant and Equipment | Construction in progress | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Leases recorded on the balance sheet during the period | 250,000,000 | ||
Other Noncurrent Liabilities | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Leases recorded as non-current liabilities on the balance sheet during the period | $250,000,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Future Minimum Payments Under Non-Cancelable Operating Leases, Along with Sublease Income Amounts) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Schedule of Operating Leases [Line Items] | |
Operating Leases | $6,245 |
Sub-lease Income | 62 |
Net Operating Leases | 6,183 |
2015 | |
Schedule of Operating Leases [Line Items] | |
Operating Leases | 628 |
Sub-lease Income | 30 |
Net Operating Leases | 598 |
2016 | |
Schedule of Operating Leases [Line Items] | |
Operating Leases | 643 |
Sub-lease Income | 21 |
Net Operating Leases | 622 |
2017 | |
Schedule of Operating Leases [Line Items] | |
Operating Leases | 644 |
Sub-lease Income | 10 |
Net Operating Leases | 634 |
2018 | |
Schedule of Operating Leases [Line Items] | |
Operating Leases | 597 |
Sub-lease Income | 1 |
Net Operating Leases | 596 |
2019 | |
Schedule of Operating Leases [Line Items] | |
Operating Leases | 576 |
Sub-lease Income | 0 |
Net Operating Leases | 576 |
Thereafter | |
Schedule of Operating Leases [Line Items] | |
Operating Leases | 3,157 |
Sub-lease Income | 0 |
Net Operating Leases | $3,157 |
Net_Income_Per_Share_Computati
Net Income Per Share (Computation of Basic and Diluted Net Income Per Share) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator | |||
Allocation of undistributed earnings - continuing operations | $13,928 | $13,347 | $11,553 |
Allocation of undistributed earnings - discontinued operations | 516 | -427 | -816 |
Net income | 14,444 | 12,920 | 10,737 |
Denominator | |||
Shares used in per share calculation - basic | 675,935 | 665,692 | 654,426 |
Continuing operations (in dollars per share) | $20.61 | $20.05 | $17.66 |
Discontinued operations (in dollars per share) | $0.76 | ($0.64) | ($1.25) |
Net income (loss) per share - basic (in dollars per share) | $21.37 | $19.41 | $16.41 |
Numerator | |||
Allocation of undistributed earnings for basic computation - continuing operations | 13,928 | 13,347 | 11,553 |
Allocation of undistributed earnings for basic computation - discontinued operations | 516 | -427 | -816 |
Denominator | |||
Shares used in per share calculation - basic | 675,935 | 665,692 | 654,426 |
Weighted-average effect of dilutive securities | |||
Number of shares used in per share computation | 687,070 | 677,618 | 664,610 |
Continuing operations (in dollars per share) | $20.27 | $19.70 | $17.39 |
Discontinued operations (in dollars per share) | $0.75 | ($0.63) | ($1.23) |
Net income (loss) per share - diluted (in dollars per share) | $21.02 | $19.07 | $16.16 |
Class A Common Stock | |||
Numerator | |||
Allocation of undistributed earnings - continuing operations | 5,829 | 5,484 | 4,627 |
Allocation of undistributed earnings - discontinued operations | 216 | -175 | -327 |
Net income | 6,045 | 5,309 | 4,300 |
Denominator | |||
Shares used in per share calculation - basic | 282,877 | 273,518 | 262,078 |
Continuing operations (in dollars per share) | $20.61 | $20.05 | $17.66 |
Discontinued operations (in dollars per share) | $0.76 | ($0.64) | ($1.25) |
Net income (loss) per share - basic (in dollars per share) | $21.37 | $19.41 | $16.41 |
Numerator | |||
Allocation of undistributed earnings for basic computation - continuing operations | 5,829 | 5,484 | 4,627 |
Allocation of undistributed earnings for basic computation - discontinued operations | 216 | -175 | -327 |
Denominator | |||
Shares used in per share calculation - basic | 282,877 | 273,518 | 262,078 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 54,928 | 59,328 | 65,135 |
Employee stock options, including warrants issued under Transferable Stock Option program (in shares) | 2,057 | 2,748 | 2,944 |
Restricted stock units and other contingently issuable shares (in shares) | 2,515 | 3,215 | 2,148 |
Number of shares used in per share computation | 342,377 | 338,809 | 332,305 |
Continuing operations (in dollars per share) | $20.27 | $19.70 | $17.39 |
Discontinued operations (in dollars per share) | $0.75 | ($0.63) | ($1.23) |
Net income (loss) per share - diluted (in dollars per share) | $21.02 | $19.07 | $16.16 |
Class A Common Stock | Continuing Operations | |||
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 1,132 | 1,190 | 1,150 |
Reallocation of undistributed earnings | -20 | -1 | -1 |
Allocation of undistributed earnings | 6,941 | 6,673 | 5,776 |
Class A Common Stock | Discontinued Operations | |||
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 42 | -38 | -81 |
Reallocation of undistributed earnings | -1 | -1 | 0 |
Allocation of undistributed earnings | 257 | -214 | -408 |
Class B Common Stock | |||
Numerator | |||
Allocation of undistributed earnings - continuing operations | 1,132 | 1,190 | 1,150 |
Allocation of undistributed earnings - discontinued operations | 42 | -38 | -81 |
Net income | 1,174 | 1,152 | 1,069 |
Denominator | |||
Shares used in per share calculation - basic | 54,928 | 59,328 | 65,135 |
Continuing operations (in dollars per share) | $20.61 | $20.05 | $17.66 |
Discontinued operations (in dollars per share) | $0.76 | ($0.64) | ($1.25) |
Net income (loss) per share - basic (in dollars per share) | $21.37 | $19.41 | $16.41 |
Numerator | |||
Allocation of undistributed earnings for basic computation - continuing operations | 1,132 | 1,190 | 1,150 |
Allocation of undistributed earnings for basic computation - discontinued operations | 42 | -38 | -81 |
Denominator | |||
Shares used in per share calculation - basic | 54,928 | 59,328 | 65,135 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 | 0 |
Employee stock options, including warrants issued under Transferable Stock Option program (in shares) | 0 | 4 | 34 |
Restricted stock units and other contingently issuable shares (in shares) | 0 | 0 | 0 |
Number of shares used in per share computation | 54,928 | 59,332 | 65,169 |
Continuing operations (in dollars per share) | $20.27 | $19.70 | $17.39 |
Discontinued operations (in dollars per share) | $0.75 | ($0.63) | ($1.23) |
Net income (loss) per share - diluted (in dollars per share) | $21.02 | $19.07 | $16.16 |
Class B Common Stock | Continuing Operations | |||
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | -19 | -21 | -17 |
Allocation of undistributed earnings | 1,113 | 1,169 | 1,133 |
Class B Common Stock | Discontinued Operations | |||
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | -1 | 1 | 1 |
Allocation of undistributed earnings | 41 | -37 | -80 |
Class C Capital Stock | |||
Numerator | |||
Allocation of undistributed earnings - continuing operations | 6,967 | 6,673 | 5,776 |
Allocation of undistributed earnings - discontinued operations | 258 | -214 | -408 |
Net income | 7,225 | 6,459 | 5,368 |
Denominator | |||
Shares used in per share calculation - basic | 338,130 | 332,846 | 327,213 |
Continuing operations (in dollars per share) | $20.61 | $20.05 | $17.66 |
Discontinued operations (in dollars per share) | $0.76 | ($0.64) | ($1.25) |
Net income (loss) per share - basic (in dollars per share) | $21.37 | $19.41 | $16.41 |
Numerator | |||
Allocation of undistributed earnings for basic computation - continuing operations | 6,967 | 6,673 | 5,776 |
Allocation of undistributed earnings for basic computation - discontinued operations | 258 | -214 | -408 |
Denominator | |||
Shares used in per share calculation - basic | 338,130 | 332,846 | 327,213 |
Weighted-average effect of dilutive securities | |||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 | 0 |
Employee stock options, including warrants issued under Transferable Stock Option program (in shares) | 2,038 | 2,748 | 2,944 |
Restricted stock units and other contingently issuable shares (in shares) | 4,525 | 3,215 | 2,148 |
Number of shares used in per share computation | 344,693 | 338,809 | 332,305 |
Continuing operations (in dollars per share) | $20.27 | $19.70 | $17.39 |
Discontinued operations (in dollars per share) | $0.75 | ($0.63) | ($1.23) |
Net income (loss) per share - diluted (in dollars per share) | $21.02 | $19.07 | $16.16 |
Class C Capital Stock | Continuing Operations | |||
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | 20 | 1 | 1 |
Allocation of undistributed earnings | 6,987 | 6,674 | 5,777 |
Class C Capital Stock | Discontinued Operations | |||
Numerator | |||
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares | 0 | 0 | 0 |
Reallocation of undistributed earnings | 1 | 1 | 0 |
Allocation of undistributed earnings | $259 | ($213) | ($408) |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 21, 2012 | Dec. 31, 2011 |
class | |||||
Stockholders Equity Note [Line Items] | |||||
Convertible preferred stock, shares authorized | 100,000,000 | 100,000,000 | |||
Convertible preferred stock, par value (in dollars per share) | $0.00 | $0.00 | |||
Convertible preferred stock, shares issued | 0 | 0 | |||
Convertible preferred stock, shares outstanding | 0 | 0 | |||
Number of authorized classes of stock | 3 | ||||
Common stock, par value (in dollars per share) | $0.00 | ||||
Shares reserved for future issuance | 17,525,225 | ||||
Options, Grants in Period, Weighted Average Grant Date Fair Value | $107.20 | $97.14 | |||
Total grant date fair value of stock options vested | $94 | $223 | $489 | ||
Aggregate intrinsic value of all options and warrants exercised | 589 | 1,793 | 827 | ||
Class A Common Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Common stock, entitled votes per share | 1 | ||||
Common stock and capital stock, shares authorized | 9,000,000,000 | 9,000,000,000 | 9,000,000,000 | 6,000,000,000 | |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | |||
Class B Common Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Common stock, entitled votes per share | 10 | ||||
Common stock and capital stock, shares authorized | 3,000,000,000 | 3,000,000,000 | |||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | |||
Class C Capital Stock | |||||
Stockholders Equity Note [Line Items] | |||||
Common stock, entitled votes per share | 0 | ||||
Capital stock, shares authorized | 3,000,000,000 | 3,000,000,000 | 3,000,000,000 | ||
Potential Adjustment Payment for Class C | 593 | ||||
Capital stock, par value (in dollars per share) | $0.00 | $0.00 | |||
Employee stock options | |||||
Stockholders Equity Note [Line Items] | |||||
Stock Plans, terms | 10 years | ||||
Stock Plans, vesting period | 4 years | ||||
Unrecognized compensation cost | 56 | ||||
Unrecognized compensation cost related to stock awards, weighted-average period | 1 year 2 months 13 days | ||||
Restricted Stock Units (RSUs) | |||||
Stockholders Equity Note [Line Items] | |||||
Unrecognized compensation cost | $9,700 | ||||
Unrecognized compensation cost related to stock awards, weighted-average period | 2 years 10 months 21 days |
Stockholders_Equity_WeightedAv
Stockholders' Equity (Weighted-Average Assumptions used to Estimate Fair Values of Stock Options Granted) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rate | 0.90% | 1.00% |
Expected volatility | 29.00% | 29.00% |
Expected life (in years) | 5 years 9 months 25 days | 5 years 2 months 12 days |
Dividend yield | 0.00% | 0.00% |
Stockholders_Equity_Stock_Opti
Stockholders' Equity (Stock Option Activity) (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | |
Options Outstanding - Number of Shares | ||
Balance at December 31, 2013 (in shares) | 10,065,726 | |
Granted (in shares) | 0 | |
Exercised (in shares) | -2,328,965 | |
Forfeited/canceled (in shares) | -496,342 | |
Balance at December 31, 2014 (in shares) | 7,240,419 | |
Exercisable as of December 31, 2014 (in shares) | 6,213,230 | |
Exercisable as of December 31, 2014 and expected to vest thereafter in (in shares) | 7,129,380 | [1] |
Options Outstanding - Weighted-Average Exercise Price | ||
Balance at December 31, 2013 (in dollars per share) | $215.50 | |
Exercised (in dollars per share) | $199.84 | |
Forfeited/canceled (in dollars per share) | $293.31 | |
Balance at December 31, 2014 (in dollars per share) | $215.56 | |
Exercisable as of December 31, 2014 (in dollars per share) | $199.57 | |
Exercisable as of December 31, 2014 and expected to vest thereafter (in dollars per share) | $214.06 | [1] |
Options Outstanding - Weighted-Average Remaining Contractual Term | ||
Balance at December 31, 2014 | 4 years 4 months 1 day | |
Exercisable as of December 31, 2014 | 3 years 10 months 15 days | |
Exercisable as of December 31, 2014 and expected to vest thereafter | 4 years 3 months 14 days | [1] |
Options Outstanding - Average Intrinsic Value | ||
Balance at December 31, 2014 | $2,266 | [2] |
Exercisable as of December 31, 2014 | 2,044 | [2] |
Exercisable as of December 31, 2014 and expected to vest thereafter | $2,242 | [1],[2] |
Class A Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing stock price | $530.66 | |
Class C Capital Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing stock price | $526.40 | |
[1] | Options expected to vest reflect an estimated forfeiture rate. | |
[2] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock prices of $530.66 and $526.40 of our Class A common stock and Class C capital stock, respectively, on December 31, 2014. |
Stockholders_Equity_Unvested_R
Stockholders' Equity (Unvested Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Restricted Stock Units (RSUs) | ||
Unvested restricted stock units - number of shares | ||
Unvested at December 31, 2013 (in shares) | 21,953,960 | |
Granted (in shares) | 15,520,343 | |
Vested (in shares) | -10,742,740 | |
Forfeited/canceled (in shares) | -2,112,014 | |
Unvested at December 31, 2014 (in shares) | 24,619,549 | |
Expected to vest after December 31, 2014 (in shares) | 21,958,176 | [1] |
Unvested restricted stock units - weighted-average grant-date fair value | ||
Unvested at December 31, 2013 (in dollars per share) | $359.20 | |
Granted (in dollars per share) | $573.71 | |
Vested (in dollars per share) | $361.92 | |
Forfeited/canceled (in dollars per share) | $420.28 | |
Unvested at December 31, 2014 (in dollars per share) | $487.80 | |
Expected to vest after December 31, 2014 (in dollars per share) | $487.80 | [1] |
[1] | RSUs expected to vest reflect an estimated forfeiture rate. |
401k_Plans_Narrative_Details
401(k) Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
401(k) Savings Plan employer contribution | $259 | $202 | $164 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
jurisdiction | |||
Income Taxes [Line Items] | |||
Income before income taxes, income from domestic operations amount | $7,936,000,000 | $7,044,000,000 | $6,447,000,000 |
Income before income taxes, income from foreign operations amount | 9,323,000,000 | 8,855,000,000 | 8,021,000,000 |
Research tax credit from retroactive extension of prior period tax law | 189,000,000 | ||
Cumulative amount of foreign subsidiaries earnings upon which U.S. income taxes have not been provided | 47,400,000,000 | ||
California research and development credit carryforwards | 734,000,000 | ||
Foreign tax carryforwards | 82,000,000 | ||
Total unrecognized tax benefits that, if recognized, would affect our effective tax rate | 3,026,000,000 | 2,378,000,000 | 1,749,000,000 |
Uncertain tax positions, accrued interest and penalties | 215,000,000 | 181,000,000 | |
Number of tax jurisdictions | 2 | ||
IRS | |||
Income Taxes [Line Items] | |||
Tax issues planned to be litigated in court | 1 | ||
IRS | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 554,000,000 | ||
State | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 400,000,000 | ||
Capital loss carryforwards | $379,000,000 |
Income_Taxes_Provision_for_Inc
Income Taxes (Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $2,424 | $2,217 | $2,484 |
State | 140 | 117 | 169 |
Foreign | 774 | 711 | 312 |
Total | 3,338 | 3,045 | 2,965 |
Deferred: | |||
Federal | 29 | -421 | -109 |
State | 7 | 0 | 5 |
Foreign | -43 | -72 | 55 |
Total | -7 | -493 | -49 |
Provision for income taxes | $3,331 | $2,552 | $2,916 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected provision at federal statutory tax rate (35%) | $6,041 | $5,567 | $5,064 |
State taxes, net of federal benefit | 115 | 123 | 114 |
Change in valuation allowance | -164 | -641 | 1,921 |
Foreign rate differential | -2,400 | -2,659 | -2,208 |
Federal research credit | -318 | -433 | 0 |
Basis difference in investment of Arris | 0 | 644 | -1,960 |
Other adjustments | 57 | -49 | -15 |
Provision for income taxes | $3,331 | $2,552 | $2,916 |
Income_Taxes_Reconciliation_of1
Income Taxes (Reconciliation of Federal Statutory Income Tax Rate to Effective Income Tax Rate Phantom) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Expected provision at federal statutory tax rate, percentage | 35.00% | 35.00% | 35.00% |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Stock-based compensation expense | $376 | $283 |
State taxes | 133 | 204 |
Investment loss | 133 | 266 |
Legal settlement accruals | 175 | 45 |
Accrued employee benefits | 671 | 477 |
Accruals and reserves not currently deductible | 175 | 390 |
Net operating losses | 207 | 279 |
Tax credits | 262 | 394 |
Basis difference in investment of Arris | 1,347 | 1,372 |
Other | 243 | 250 |
Total deferred tax assets | 3,722 | 3,960 |
Valuation allowance | -1,659 | -1,899 |
Total deferred tax assets net of valuation allowance | 2,063 | 2,061 |
Deferred tax liabilities: | ||
Depreciation and amortization | -852 | -537 |
Identified intangibles | -965 | -1,479 |
Mark-to-market investments | -273 | 6 |
Renewable energy investments | -430 | -223 |
Other | -123 | -185 |
Total deferred tax liabilities | -2,643 | -2,418 |
Net deferred tax liabilities | ($580) | ($357) |
Income_Taxes_Summary_of_Activi
Income Taxes (Summary of Activity Related to Gross Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $2,571 | $1,933 | $1,564 |
Increases related to prior year tax positions | 66 | 158 | 60 |
Decreases related to prior year tax positions | -44 | -37 | -40 |
Decreases related to settlement with tax authorities | -1 | -78 | -62 |
Increases related to current year tax positions | 820 | 595 | 411 |
Ending Balance | $3,412 | $2,571 | $1,933 |
Information_about_Segments_and2
Information about Segments and Geographic Areas (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Information_about_Segments_and3
Information about Segments and Geographic Areas (Revenues by Geographic Area) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $66,001 | $55,519 | $46,039 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 28,139 | 24,752 | 21,287 |
United Kingdom | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 6,483 | 5,600 | 4,846 |
Rest of the world | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $31,379 | $25,167 | $19,906 |
Information_about_Segments_and4
Information about Segments and Geographic Areas (Long-Lived Assets by Geographic Area) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $50,448 | $38,034 | [1] |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 37,355 | 24,004 | [1] |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $13,093 | $14,030 | [1] |
[1] | Includes the long-lived assets from the Motorola Mobile segment as of December 31, 2013. |
Subsequent_Event_Details
Subsequent Event (Details) (SpaceX, Subsequent Event, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 20, 2015 |
SpaceX | Subsequent Event | |
Subsequent Event [Line Items] | |
Payments to acquire interest in joint venture | $900 |
Schedule_II_Valuation_and_Qual1
Schedule II: Valuation and Qualifying Accounts (Details) (Allowance for doubtful accounts and sales credits, USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for doubtful accounts and sales credits | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $631 | $581 | $133 |
Additions | 1,240 | 1,128 | 1,263 |
Usage | -1,646 | -1,078 | -815 |
Balance at End of Year | $225 | $631 | $581 |